Losses are important to a competitive price-searcher market (industry) because they send a message to the market participants that
a. more resources should be devoted to a particular industry.
b. resources can rise in value if diverted away from that particular industry.
c. resources are allocated exactly as they should be.
d. the firms should charge lower prices.
B
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Increases in the marginal product of labor result from
A) increasing the usage of all inputs. B) the division of labor and specialization. C) the use of new technology. D) hiring more efficient workers.
The marginal benefit of pollution abatement
A) increases at an increasing rate as abatement increases. B) decreases as pollution abatement increases because of the law of diminishing marginal utility. C) increases as pollution abatement increases because of the law of increasing marginal returns. D) is constant as pollution abatement increases.
Arun is a job seeker. He notes that although the U.S. unemployment rate has dropped, the frictional unemployment has risen. How should he feel about this news?
a. concerned, because an uptick in frictional unemployment usually corresponds to the start of an economic slowdown b. optimistic, because frictional unemployment often rises when there are a lot of available job opportunities c. ambivalent, because the economy is doing well, but it will probably take him a long time to find a job d. confused, because the frictional unemployment rate almost always mirrors overall unemployment rate
Alexis de Tocqueville observed in his Democracy in America: "There is no country in which everything can be provided for by the laws, or in which political institutions can prove a substitute for
A) common sense and morality."
B) economic development."
C) police and prisons."
D) supply and demand."
E) the private pursuit of private interests."