Efficiency occurs when
A. unemployment is low and prices are stable.
B. the economy has a fair and just distribution of income.
C. all markets are in equilibrium.
D. the economy is producing what people want at least possible cost.
Answer: D
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The quantity of labor demanded is the labor hours all
A) firms plan to hire at a given real wage rate. B) firms plan to hire at a given nominal wage rate. C) employees plan to work at a given real wage rate. D) employees plan to work at a given nominal wage rate. E) Both answers A and C are correct.
The labor-force participation rate of a country is 20%. The number of employed and unemployed people are 50 million and 20 million, respectively. The adult population of the country is _____
a. 70 million b. 120 million c. 450 million d. 350 million
A consultant has advised Consolidated Fish, Inc., a perfectly competitive firm, that it should cut back its production in order to increase its profits. We can conclude from this that
A. CF's total costs must be greater than its total revenues. B. CF's marginal cost must be greater than the price of its product. C. fixed costs are not being covered and CF should shut down. D. CF's costs are increasing at a rate less than its revenues.
The perfectly competitive firm's short-run supply curve is the same as the
a. supply curve of all other firms in the industry b. upward-sloping portion of its marginal cost curve c. upward-sloping portion of its marginal cost curve at or above minimum average variable cost d. upward-sloping portion of its average variable cost curve e. market demand curve