Because it is small relative to the market, a perfectly competitive firm faces an inelastic demand curve for its output
a. True
b. False
B
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Based on the following data for the country of Tiny Town, the unemployment rate equals Population = 100 Labor force = 80 Number of employed persons = 70 Number of discouraged workers = 5
A) 10/100 × 100. B) 10/80 × 100. C) 15/80 × 100. D) 5/70 × 100.
The Lorenz curve shows the
a. functional distribution of income b. personal distribution of income c. relative percentage of income going to each of the resources d. demand for unskilled versus unskilled labor e. cumulative percentage of income received by cumulative percentages of households
The expenditure approach measures GDP by adding the spending of households, businesses, government, and foreigners
a. True b. False Indicate whether the statement is true or false
The shifts in aggregate demand and aggregate supply as a result of the housing bubble collapse caused output to:
A. fall dramatically immediately. B. stay the same, since the shifts worked in opposite directions. C. rise temporarily, then fall. D. fall at a relatively slow rate over time.