In order to divide a given production quota between two production processes in such a way as to produce the quota at the lowest possible cost, one should produce the output where
A. marginal costs are at least equal to ATC in each process.
B. average costs are equal for both processes.
C. average cost is equal to marginal cost for both processes.
D. marginal costs are equal in both processes.
Answer: D
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The rate of inflation increases when
A) the unemployment rate equals the NAIRU. B) the unemployment rate exceeds the NAIRU. C) the unemployment rate is less than the NAIRU. D) the unemployment rate increases faster than the NAIRU increases.
The national debt must be paid back in the future
a. True b. False
Demand-pull inflation and cost-push inflation are both characterized by higher levels of unemployment
Indicate whether the statement is true or false
The poverty rate is the percentage of the population that have a family income level below the
a. income maintenance threshold. b. poverty line. c. bottom quintile of the income distribution. d. minimum wage.