Referring to Figure 1.9, if a point represents unemployment, it is in 
A. AREA #1 but not on the curve.
B. AREA #1 or is on the curve.
C. AREA #2 or is on the curve.
D. AREA #2 but not on the curve.
Answer: A
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Gunnar can work as a campus security officer at a guaranteed salary of $20,000 per year or as a real estate agent
If Gunnar works as a real estate agent, there is a 50 percent chance that he will earn $10,000 per year and a 50 percent chance that he will earn $30,000 per year. Based on the table above, Gunnar's expected utility if he works as a real estate agent is A) 170. B) 85. C) 20. D) 90.
The case where a firm sells each unit at the maximum amount each customer is willing to pay for it is called
A) first-degree price discrimination. B) second-degree price discrimination. C) third degree price discrimination. D) nonlinear price discrimination.
In general, one of the results of free trade is that the owners of domestically:
A. scarce factors of production lose due to increased competition. B. abundant factors of production lose from increased demand. C. scarce factors of production win due to increased consumers. D. abundant factors of production win from decreased demand.
If a firm invests a lot in new employees, it is likely to
A) forward load compensation. B) pay all the costs of the new training. C) backload compensation. D) none of these choices.