To analyze aggregate productivity, economists typically assume ________
A) that the hours each person works varies with the wage rate
B) that all of the capital and labor in the economy are fully utilized
C) that output can increase only if inputs have become more productive
D) all of the above
E) none of the above
B
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Two economists can agree that raising the minimum wage creates unemployment yet one might argue that raising the minimum wage is a good policy and the other that it is a bad policy
Why can this difference exist? Be sure to use the terms positive and normative in your answer.
Refer to Figure 6-4. The absolute value of the price elasticity of demand at the midpoint of the demand curve is
A) one. B) at a maximum. C) at a minimum. D) zero.
When marginal revenue is positive, total revenue must rise as output increases
a. True b. False
If the social costs of an economic activity are $120 and the private costs are $75, then the external costs of the activity are ________, and market failure ________.
A. $45; occurs B. $195; occurs C. $195; does not occur D. $45; does not occur