Why are high rates of unemployment of concern to economists?
A. Higher rates of unemployment generally lead to higher inflation rates.
B. Environmental destruction is more prevalent when unemployment rates are high.
C. There is lost output that could have been produced if the unemployed had been working.
D. All of these options are reasons why economists are concerned about high unemployment
rates.
Answer: C
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In the short run, a firm's marginal cost tends to rise as more is produced because of
a. diminishing marginal returns. b. the implicit costs of production. c. diseconomies of scale. d. rising input costs.
The law of increasing opportunity cost reflects the fact that
a. the production possibilities frontier is bowed inward b. resources are not perfectly substitutable c. resources cannot always be used efficiently d. an economy will operate at a point inside the production possibilities frontier e. an economy will operate at a point along the production possibilities frontier
If you observed the wage rate decreasing while employment increased, which of the following would be a possible explanation?
a. A decrease in labor demand b. A decrease in labor demand coupled with a decrease in labor supply c. An increase in labor supply d. A decrease in labor supply e. It is not possible for the wage rate to decrease while employment is increasing
Real GDP per capita in the U.S. grows over time
a. True b. False Indicate whether the statement is true or false