When there is a recessionary gap, capital and labor resources are:
A. not being fully utilized.
B. misallocated.
C. decreasing in number.
D. producing beyond their capacity.
Answer: A
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When people who are willing and able to work cannot find jobs, ________ is said to exist
Fill in the blank(s) with correct word
The figure above shows the costs for the typical grower in the perfectly competitive turnip market. Currently, the price is $1,000 for a ton of turnips. In the long run, the market supply of turnips will ________
A) decrease and the price of a ton of turnips will fall to $600 B) increase and the turnip grower's economic profit will increase C) increase and the turnip grower's economic profit will decrease D) decrease and the price of a ton of turnips will rise to $1,200
A politician says that the government should tax behavior they want less of and subsidize behavior they want more of. This is an example of
A) cynical behavior in modern democracies. B) failing to consider the alternatives available to the government. C) a concern that people are not rational when they make decisions. D) using incentives to alter behavior.
As more workers are added to a factory with few employees, ________________rises.
Fill in the blank(s) with the appropriate word(s).