Use the following graph to answer the next question.
What is the difference between the perfectly competitive equilibrium level of output and the pure monopoly equilibrium level of output?
A. 20 units
B. 90 units
C. 110 units
D. 70 units
Answer: A
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What is the main rationale economists provide for assigning government the responsibility of protecting people against foreign aggressors?
A) It would be too dangerous to allow citizens to keep and bear arms for the purpose of forming militias to defend their communities. B) Most people are patriotic only when the government is involved. C) "National defense" must by necessity be nationalized. D) People will not risk their lives unless government requires them to do so. E) Private providers could not exclude non-payers from the benefits.
Assuming no change in the effort curve of employees, the efficiency wage model implies that
A) the real wage is rigid and equals the efficiency wage. B) the real wage exceeds the marginal productivity of labor. C) an increase in the marginal productivity of capital will increase the real wage. D) the real wage is procyclical.
Which expression best represents the break-even level of investment when incorporating labor-augmenting technological change into the Solow growth model?
A) (d + n + g)k B) (d + n)k C) (d + n ) / (k + g) D) (d + n + k) / (gk)
Cyclical unemployment depends on a country's historical and cultural heritage
a. True b. False Indicate whether the statement is true or false