At full employment there still exists some unemployment because
A) some portion of our population will always be too lazy to work.
B) there are always people too old or young to be in the labor force.
C) the U.S. economy is constantly creating and destroying jobs.
D) it is unnatural to have all people work 40 hours per week.
E) real GDP can never exceed potential GDP.
C
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Refer to the above table. Suppose the marginal revenue product of the 5th worker is $800. This implies that
A) the price of the good is $5.33. B) the price of the good is $8. C) the price of the good is $70. D) we cannot tell what the price of the good is without more information.
The period of declining growth in real GDP between the peak of the business cycle and the trough is called the
a. contractionary phase. b. boom. c. expansionary phase. d. stationary phase.
Which of the following is not a source of economies of scale?
A. Use of larger machines B. Labor specialization C. Inelastic resource supply curves D. Learning-by-doing
Explain some of the reasons why the HO model is difficult to test empirically. Does this mean that it is not a useful model of trade?
What will be an ideal response?