Full employment corresponds to
A) equilibrium in the labor market, with actual GDP being equal to potential GDP.
B) labor demand being greater than labor supply and actual GDP being equal to potential GDP.
C) being at the point where the marginal product of labor equals zero.
D) equilibrium in the labor market, and actual GDP exceeding potential GDP.
A
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Fill in the blank: Rebecca goes to the hairdresser more often now that her salary has increased. For Rebecca, the hairdresser's service is probably ________
A) a normal good B) an inferior good C) a free good D) a bad
The ability to produce a good or service using fewer resources than other producers use is known as
a. absolute advantage. b. comparative advantage. c. comparative specialization. d. absolute specialization.
The impact of crowding out
A) is larger in an open economy as compared to a closed economy. B) is larger in a closed economy as compared to an open economy. C) is larger in an open economy as compared to a closed economy when fiscal policy is contractionary. D) is larger in a closed economy as compared to an open economy when fiscal policy is contractionary.
Durable, marketable skills that generate higher income are also known as:
A. physical capital. B. investment capital. C. human capital. D. education capital.