Which of the following is true?
a. The natural rate of unemployment is present when the economy is operating at full employment.
b. The natural rate of unemployment is equal to the number of persons unemployed divided by the number of persons in the labor force.
c. The natural rate of unemployment is primarily the result of the ups and downs of the business cycle.
d. Public policy cannot influence the natural rate of unemployment.
Answer: a. The natural rate of unemployment is present when the economy is operating at full employment.
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Which law was passed to outlaw certain practices not prohibited by the Sherman Antitrust Act?
a. the Clayton Act b. the Smoot-Hawley Act c. the Celler-Kefauver Anti-Merger Act d. the Wheeler-Lea Act e. the Federal Trade Commission Act
Because a monopsony must raise the wage on all labor hired in order to hire more labor,
A) the MCL curve is horizontal at the market wage. B) the MCL curve is negatively sloped. C) MCL = W. D) MCL > W.
A market in which a small number of strategically interdependent firms produce the dominant share of output is called
a. perfect competition b. a monopoly c. monopolistic competition d. regulated e. an oligopoly
Product differentiation in monopolistically competitive markets ensures that, for profit-maximizing firms,
a. marginal revenue will equal average total cost. b. price will exceed marginal cost. c. marginal cost will exceed average revenue. d. average variable cost will be declining.