The economy is at full employment when the actual rate of unemployment equals the
a. labor force minus the number of discouraged workers
b. rate of frictionally unemployed plus the rate of structurally unemployed workers
c. rate of cyclically unemployed plus the rate of structurally unemployed workers
d. natural rate of unemployment minus the rate of cyclically unemployed workers
e. rate of discouraged workers plus the rate of underemployed workers
B
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Refer to Scenario 3. The average total cost of 5 units of output is:
A) $8. B) $10. C) $29. D) $39.
An increase in the supply of U.S. dollars to the foreign exchange market could be caused by all of the following except
a. U.S. incomes rise b. U.S. interest rates fall c. U.S. consumers buy more imported cars d. U.S. incomes fall e. U.S. travelers take more trips to other countries
In perfect competition, one result of the model was that there were no economic profits in the long run. In a monopoly, the firm typically earns a positive economic profit. Why is there this difference?
What will be an ideal response?
Data from the effects of the substantial tax rate reductions in the 1980s
a. cast serious doubt on the Laffer curve as a guide for tax policy. b. are consistent with the principles illustrated in the Laffer curve. c. generally reject the idea that lower tax rates can lead to higher tax revenue. d. support an "inverted Laffer curve" in which reducing tax rates for those with high incomes leads to lower tax revenue.