If the economy is at full employment, then
A) the entire population is employed.
B) the only unemployment is frictional unemployment plus discouraged workers.
C) the entire labour force is employed.
D) all unemployment arises from normal frictions and structural change.
E) the unemployment rate is less than 3 percent.
D) all unemployment arises from normal frictions and structural change.
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Dahlia can earn $60,000 a year working at a relatively safe job, or $65,000 a year working at a riskier job
The probability of death from working at the relatively safe job is 1/5,000, and the probability of death from working at the riskier job is 1/1,000. Using the compensating differential approach and the above information, what is the value of Dahlia's life? A) $2 million B) $2.5 million C) $6.25 million D) $25 million
A monopolistically competitive market could be considered inefficient because
a. marginal revenue exceeds average revenue. b. price exceeds marginal cost. c. the efficient scale of production is only achieved in the long run, not in the short run. d. markup pricing does not occur in any other market structure.
Any point representing a cost and output combination that is below the long-run average cost curve:
a) may represent actual cost and production levels in the short run. b) represents unattainable cost levels. c) is attainable only when all factors are variable. d) is attainable if the firm minimizes its costs according to the "principle of substitution". e) represents less efficient cost levels than points on the long-run average cost curve.
Answer the following statement true (T) or false (F)
1) Innovation is the first discovery of a new product or production process; invention is the first successful commercial introduction of the product or process. 2) Diffusion is the first successful commercial introduction of a product, the use of a new method, or the creation of a new form of business enterprise. 3) Venture capital is another name for retained earnings. 4) The marginal cost to a firm of R&D expenditures is the market interest rate the firm must pay to obtain the needed financing. 5) A firm's optimal amount of R&D occurs where the marginal benefit of this activity exceeds marginal cost by the greatest amount.