The cost of unemployment to society includes the loss of the goods and services that might have been produced if the unemployed had been employed
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose the long-run supply curve for a perfectly competitive industry is horizontal at a price of $12, and the minimum short-run average variable cost for each of the identical N firms in the industry is $8
If the demand curve for the industry decreases so that it intersects the short-run supply curve of the industry at $10, A) in the short run the price will decrease to $10, and the number of firms will still be N. In the long run the price will return to $12, and the number of firms will be less than N. B) in the short run the price will decrease to $10, and the number of firms will be less than N. In the long run the price will return to $12, and the number of firms will return to N. C) in the short run the price will remain at $12, and the number of firms will still be N. In the long run the price will fall to $8, and the number of firms will be less than N. D) In the short run the price will decrease to $10, and the number of firms will be less than N. In the long run the price will return to $12, and the number of firms will return to N.
A demand curve is a graphical representation of
A) consumer tastes. B) national income. C) the demand schedule. D) relative prices.
For a perfectly competitive firm facing the short-run break-even price
A) it has a negative accounting profit. B) it has an economic profit of zero. C) it should shut down. D) it should expand production.
For complements:
A. price elasticity of income is positive. B. price elasticity of income is negative. C. cross-price elasticity of demand is negative. D. cross-price elasticity of demand is positive.