When private costs equal social costs, it means that:
A. the external cost must be small relative to the private cost in the market.
B. no externality of any kind is present in the market.
C. positive externalities are present in the market.
D. negative externalities are not present in the market.
Answer: D
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The average product of labor is equal to the
A) total product divided by the total number of workers hired. B) total number of workers hired divided by the total product. C) slope of the marginal product of labor curve. D) Both answers B and C are correct.
The manufacturing sector is dominated by
A) corporations. B) partnerships. C) proprietorships. D) government firms.
The 1930s were a period of
a. strong economic expansion and rapid growth of real output. b. high rates of inflation coupled with a low rate of unemployment. c. depressed economic conditions and prolonged high rates of unemployment. d. strong growth of real output even though the general level of prices was declining.
The population of Omega totals one million people, 30 percent of whom are employed. Average output per worker in Alpha is $30,000. Real GDP per person in Alpha totals:
A. $21,000. B. $100,000. C. $9,000. D. $30,000.