Potential output
a. is defined as the level of real output that the economy could produce at high rates of resource utilization.
b. only occurs when both the unemployment rate and inflation rate are zero.
c. can be estimated by choosing benchmark measures of high resource utilization.
d. Both a and c
D
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Refer to the table shown. If the average product is 6, the number of workers could equal:Number of workersTotal output142103184285356417458489501049
A. 5. B. 7. C. 1. D. 3.
market with four firms in competition with each other has a equilibrium price of $25 and equilibrium quantity of 200,000. If the four firms form a cartel, the cartel, set price will be ________ than $25 and the set quantity will be ________ than 200,000.
A) greater; less B) less; greater C) greater; greater D) less; less
The unregulated profit maximizing monopolist prefers to operate where demand is inelastic
Indicate whether the statement is true or false
According to the bounded rationality hypothesis, an individual confronting a large number of complicated choices is most likely to respond by
A) using a simple rule of thumb to choose among a subset of easiest-to-evaluate options. B) using the ceteris paribus assumption to assist in simplifying and examining each of the possible options. C) utilizing readily available empirical evidence to assist in evaluating every option. D) assessing every available choice by developing sophisticated theories regarding each option.