If the price of a commodity is above marginal cost, then the economy will tend to
a. overproduce the item.
b. underproduce the item.
c. produce the optimal amount of the item.
d. overproduce and underproduce the item cyclically.
b
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In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted jobs. What is the unemployment rate in this town?
A. 10.0% B. 14.5% C. 11.0% D. 13.7 %
The average propensity to consume (APC) is
A) the rate at which real consumption spending changes over time. B) the percentage of real disposable income saved. C) the percentage of additional real disposable income that will go toward additional consumption spending. D) the percentage of real disposable income consumed.
The purchasing power parity predicts that if the price level in the US falls relative to Mexico,
a. The dollar will appreciate relative to the peso b. The dollar will depreciate relative to the peso c. There is no effect on either currency d. PPP predicts price level will normalize in the long-run
An increase in the output price will increase the firm's demand for labor, all else equal
a. True b. False Indicate whether the statement is true or false