The above figure shows the cost curves for a competitive firm. If the firm is to operate in the short run, price must exceed
A) $0.
B) $5.
C) $10.
D) $11.
B
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Productive activity in the underground economy:
a. results in an overstatement of actual income and production in the national accounting system. b. consists of unrecorded cash transactions. c. is estimated and included in the national income accounting system. d. poses no problem for the measurement of gross domestic product. e. does not affect GDP but is included in the value-added computations.
In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. The involuntary part-time rate is
A) 4.5 percent. B) 10 percent. C) 4.8 percent. D) 5 percent. E) none of the above.
Economists of the rational expectations school believe that if the economy is already producing its potential output, an expansionary monetary policy, if fully and correctly anticipated, will have no effect on output or employment
Indicate whether the statement is true or false
A production possibilities curve with clothing and food on the axes shows that
I. A society can not have an unlimited amount of each good II. For an efficient society, an increase in clothing production will necessitate a decrease in food production III. A society will always produce the maximum amount of both clothing and food A) I only B) II only C) III only D) Both I and II