Which of the following is NOT regarded as a source of inefficiency in monopolistic competition?
A) The fact that price exceeds marginal cost
B) Excess capacity
C) Product diversity
D) The fact that long-run average cost is not minimized
E) all of the above
C
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An economy is at full employment when ________
A) the unemployment rate is zero B) there is no frictional unemployment C) the unemployment rate equals the natural unemployment rate D) there is no structural unemployment
You are more likely to hire a plumber to repair a leaky drain pipe
a. as the tax rate on your earned income rises b. if you already own the specialized tools required to complete the plumbing repair work c. following an increase in the opportunity cost of your time d. the more knowledge and experience in plumbing repair work that you possess e. as the transaction cost of entering into a plumbing contract increases due to government regulations
Fiscal policy is the use of government spending and taxation to make changes in the level of national income
Indicate whether the statement is true or false
The Ernie Egg Store hires workers to paint eggs. The store sells the eggs for $3. The marginal revenue product of this store's fifth worker is $21. The marginal product of the fifth worker is
A. 0.14 eggs. B. 7 eggs. C. 36 eggs. D. indeterminate from this information.