The type of unemployment that occurs because of a recession is called:
A. frictional unemployment.
B. seasonal unemployment.
C. natural unemployment.
D. cyclical unemployment.
Answer: D
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To determine whether a market is perfectly competitive, economists examine the
A. number of firms in the market. B. similarities among the products of the different firms in the market. C. ease of entry and exit by firms in the market. D. All of the responses are correct.
In the United States, federal efforts to clean up the environment are coordinated by the
a. Environmental Protection Agency b. Department of the Interior c. State Department d. Department of Agriculture e. Department of Justice
In a price-leadership oligopoly model, the oligopoly firms engage in price wars
a. True b. False Indicate whether the statement is true or false
Petram Company has two plants, one in the United States and one in Vietnam, and it cannot change the size of the plants or the amount of capital equipment. The hourly wage in Vietnam is $5, while the hourly wage in the United States is $20. Given current employment, the marginal product of the last worker in Vietnam is 100, and the marginal product of the last worker in the United States is 500. Based on this information, answer the following questions.
A. Is the firm maximizing output relative to its labor cost? Explain how you know. B. If it is not, what should the firm do?