Cost pressures are most intense
A. At low rates of output.
B. As the economy approaches capacity.
C. When unemployment falls.
D. None of the choices are correct.
Answer: B
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One criticism of the unemployment rate is that it
A) is a stock measure. B) does not include people who are not working and are not looking for work. C) does not include the number of discouraged workers as unemployed. D) counts a new entrant that is actively seeking work as unemployed.
In the figure above, when 4,000 pizzas are produced, the marginal benefit of a pizza ________ its marginal cost, which means ________ pizza is being produced
A) exceeds; too little B) exceeds; too much C) is below; too much D) is below; too little E) equals; the efficient quantity of
One intention of deposit insurance is to reduce the danger of
A. excess lending. B. excess profits. C. risky lending. D. bank runs. E. All of these responses are correct.
Consider the labor market for heath care workers. Because of the aging population in the United States, the output price for health care services has increased. Holding all else equal, the equilibrium wage of health care employees would
a. increase. b. decrease. c. not change. d. It is not possible to determine what happens to the equilibrium wage.