Implicit costs are
A. always greater in the short run than in the long run.
B. composed entirely of variable costs.
C. opportunity costs of using owned resources.
D. equal to total fixed costs.
Answer: C
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If a firm finds that, at its current level of employment, VMP > W, it will
A) be maximizing profits. B) be minimizing profits. C) increase the amount of labor it hires. D) decrease the amount of labor it hires.
Refer to Figure 15-12. In the dynamic AD-AS model, the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues policy. This will result in
A) potential real GDP levels lower than what would occur if no policy had been pursued. B) inflation rates higher than what would occur if no policy had been pursued. C) real GDP levels higher than what would occur if no policy had been pursued. D) unemployment rates higher than what would occur if no policy had been pursued.
The following table depicts the production relationship between units of labor and output of pepper on Pietrov’s Pepper Farm. Labor Peppers Labor Peppers 1 10 6 75 2 25 7 77 3 45 8 78 4 60 9 77 5 70 10 75 Graphically show the three zones of production corresponding to increasing, decreasing, and negative marginal product, noting the point of diminishing returns.
What will be an ideal response?
What is the main selection issue researchers must address when trying to estimate the effectiveness of government training programs?
A. Government training programs are usually geared toward developing general skills rather than providing specific job training. B. Evaluation schemes tend to lose track of participants once they start a new job after the training. C. Most government training programs are only offered to the unemployed and not to workers who would like to switch jobs. D. The true cost of government training programs is unknown because unemployed workers also receive welfare benefits. E. The most motivated unemployed workers are the ones who are also most likely to take advantage of government training programs.