Economists often find it worthwhile to make assumptions that do not necessarily describe the real world
a. True
b. False
Indicate whether the statement is true or false
True
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The market clearing price for gasoline is $1.50, but the maximum price that can be charged is $1.29. This is an example of
a) a price control that will lead to a surplus of gasoline on the market. b) a price floor that will lead to a shortage of gasoline on the market. c) a price ceiling that will lead to a shortage of gasoline on the market. d) a price floor that will lead to a surplus of gasoline on the market.
A firm encounters its "shutdown point" when:
A) average total cost equals price at the profit-maximizing level of output. B) average variable cost equals price at the profit-maximizing level of output. C) average fixed cost equals price at the profit-maximizing level of output. D) marginal cost equals price at the profit-maximizing level of output.
A firm should not necessarily shut down if:
a. total revenue is less than total variable cost. b. firms suffer losses and the price is above variable costs. c. the demand curve facing the firm lies below its average variable cost curve. d. price is less than average variable cost. e. firms suffer losses and the price is below variable costs.
Which of the following can be considered an example of structural unemployment?
a. A recent graduate searching for his first job b. A ski instructor looking for a part-time job during summer c. An engineer looking for a new job after losing his job during a recession d. A typist looking for a new job as his skills are not needed in the current labor market