Economists believe the "full employment" level of unemployment is
(a) 0 percent
(b) 2 percent
(c) 5 percent
(d) 10 percent
(c)
You might also like to view...
Above-normal profits earned by existing firms in a perfectly competitive market will eventually lead to:
a. exit of the firms from the market. b. an increase in the market price of the good. c. entry of new firms into the market. d. a decrease in the aggregate supply. e. the existing firms emerging as price makers.
A sandwich shop owner has the following information: P = MR = $4, ATC = $2, AVC = $1, MC = 4, and Q = 500 . From this, she can determine
a. her profits are not being maximized b. she has earned zero economic profits c. she has earned economic profits of $1,000 d. she has earned economic profits of $1,500 e. she should sell fewer sandwiches
A farmer with $1000 worth of crops in the field faces a .10 probability that a hail storm will destroy the value of her crop before she can harvest it. If she is risk averse, the most she would be willing to pay to insure against this loss is
a. $0. b. $10. c. $100. d. $900.
Refer to the diagram. The movement down the production possibilities curve from point A to point E suggests that the production of:
A. computers, but not bicycles, is subject to increasing opportunity costs.
B. bicycles, but not computers, is subject to increasing opportunity costs.
C. both bicycles and computers is subject to constant opportunity costs.
D. both bicycles and computers is subject to increasing opportunity costs.