Where along the long-run average total cost curve will an efficient firm try to produce in the long run?
a. Along the downward-sloping portion when there are economies of scale because cost per unit of output is decreasing at that level of production.
b. Along the upward-sloping portion when there are diseconomies of scale because a firm will sell more output at that level of production.
c. When there are constant returns to scale because this is the minimum efficient level of production, and cost per unit of output is at its lowest.
Ans: c. When there are constant returns to scale because this is the minimum efficient level of production, and cost per unit of output is at its lowest.
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In the figure above, production efficiency occurs at ________, and allocative efficiency occurs at ________
A) all points on the PPF; only one point on the PPF B) only one point on the PPF; all points on the PPF C) only one point on the PPF; only one point on the PPF D) all points on the PPF; all points on the PPF E) all points on the PPF; all points above the PPF
Refer to the figures below. We begin in equilibrium with wages We in both the Unionized and Non unionized Labor Markets. Now suppose a Union Wage of Wu is achieved in the Unionized Labor Market. This will cause
a. fewer job opportunities in the Unionized Labor Market.
b. an increase in the supply of workers looking for employment in the Non unionized Labor Market.
c. lower wages to be earned in the Nonunionized Labor Market.
d. All of the above.
What is one of the criticisms of measuring unemployment?
a. People who are not employed and not seeking work are counted as unemployed. b. People who are self-employed but not reporting their income to tax authorities are counted as employed. c. People who report that they are looking for work, but are not looking very hard, are counted as unemployed. d. People who do not have jobs and would be available to work but have gotten discouraged at the lack of available jobs in their area and stopped looking, are counted as unemployed.
According to the efficient markets hypothesis, stocks follow a random walk so that stocks that increase in price one year are more likely to increase than decrease in the next year
a. True b. False Indicate whether the statement is true or false