Allocative efficiency occurs when firms produce:
a. where price equals minimum long run average cost.
b. where price equals marginal cost.
c. where consumer surplus is zero and producer surplus is positive.
d. where marginal benefit equals marginal cost.
d
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Which of the following variables will not cause the market supply curve of labor to shift?
A) a change in the labor participation rate of women B) an increase in the number of people between the ages of 16 and 65 C) increases in population D) a favorable change in consumer tastes
Which of the following factors makes the success of economic integration more likely?
(a) Nationalism. (b) Desire for prestige projects. (c) Diverse economic systems. (d) All of the above. (e) None of the above.
The completion of a degree or course of study is a good labor market signal
A) only if what is learned in that educational process relates directly to the job the individual is being considered for. B) only if there is a positive correlation between academic success and wage income. C) primarily because individuals develop good habits in college that serve them well in other areas later on. D) because all individuals have the opportunity (in the United States) to pursue higher education. E) because people who possess the traits that make them more productive in the workplace have an easier time completing an education than those who don't.
Recessionary gaps usually lead to
a. structural unemployment. b. cyclical unemployment. c. seasonal unemployment. d. frictional unemployment.