If the economy is at full employment, then the unemployment rate
A) is greater than the natural unemployment rate.
B) is equal to the natural unemployment rate.
C) is below the natural unemployment rate.
D) is equal to zero.
E) can be anywhere on a short-run Phillips curve.
B
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If the price elasticity of supply for a good is 10, then supply is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.
Aggregate demand (AD) refers to the amount of total spending on:
a. domestic goods and services in an economy. b. international goods and services in an economy. c. domestic marketing of goods and services in an economy. d. international marketing of goods and services in an economy.
Depreciation:
A. estimates the decrease in value of capital goods due to wear and tear over the year. B. represents a firm's expenditure to add to its capital stock. C. is the reduction in business inventories per year. D. is the decline in the value of a firm's stock.
In the standard model of pure competition, a profit-maximizing firm will shut down in the short run if price is below:
A. Marginal cost B. Average cost C. Average fixed cost D. Average variable cost