The classical model explains away unemployment as a long-run problem by assuming that
a. coordination in labor markets will occur within an acceptable period of time
b. the economy consists of multiple, coordinated sectors
c. it causes firms to cut back on their long-run production plans
d. what is a problem during one period will seem more like an opportunity for economic growth during another period
e. higher saving will stimulate increased investment
A
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A major characteristic of structural unemployment that differentiates it from frictional unemployment is that structural unemployment
A) exists only during a recession. B) exists in an expansion whereas there is no frictional unemployment in an expansion. C) is a short-term problem. D) usually lasts longer than frictional unemployment.
The above figure shows the costs at Barney's Bagel Bakery. Up to which level of output will increasing marginal returns in production be experienced at Barney's Bagel Bakery?
A) up to 500 bagels B) up to 2000 bagels C) up to 3000 bagels D) up to 3500 bagels
Suppose it costs Minnie's Mini-Golf (a monopolist) not a penny more to let another person on the course. If Minnie's faces a linear (downward-sloping) market demand curve, it will maximize profit by choosing the point on the demand curve at which
a. marginal revenue is greatest b. price elasticity is unit elastic c. price elasticity is inelastic d. price exceeds average total cost by the greatest amount e. price exceeds marginal cost by the greatest amount
The demand for bread is less elastic than the demand for donuts; hence, a tax on bread will create a larger deadweight loss than will the same tax on donuts, other things equal
a. True b. False Indicate whether the statement is true or false