When an economy is operating efficiently, which is TRUE?
A) All resources are fully employed.
B) It would be possible to increase the output of 1 good without decreasing the output of the other.
C) Resources are not fully employed or current technology is not being fully utilized.
D) This economy is operating to the right of its production possibilities curve (PPC).
A
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Full employment is not considered to be zero unemployment, because
A) some people do not want a job. B) people do not find jobs instantaneously. C) some cyclical unemployment always exists. D) there are not enough jobs for everyone who wants one.
Suppose the government grants child care subsidies to mothers entering the labor force. What is likely to happen to the equilibrium wage and quantity of labor?
A) The equilibrium wage rises and the equilibrium quantity of labor falls. B) The equilibrium wage falls and the equilibrium quantity of labor rises. C) The equilibrium wage and the equilibrium quantity of labor fall. D) The equilibrium wage and the equilibrium quantity of labor rise.
A merger between a leather supplier and a shoe manufacturer would be classified as a:
a. horizontal merger. b. vertical merger. c. conglomerate merger. d. keiretsu.
Suppose you are viewing a graph of the total revenue generated from the sale of bananas. On the horizontal axis the numbers indicate the quantity of bananas. On the vertical axis the numbers indicate total revenue. Suppose there are two lines on the graph, A and B, and they only meet when quantity is zero. If, at an output of 10,000 bananas, A lies above B, we can say that
a. A corresponds to more bananas than B b. A represents average revenue at a lower price than B c. A represents marginal revenue at a higher price than B d. A represents total revenue at a higher price than B e. A represents total revenue at a lower price than B