A perfectly competitive industry achieves allocative efficiency in the long run. What does allocative efficiency mean?
A) Firms use an input combination that minimizes cost and maximizes output.
B) Each firm produces up to the point where all scale economies are exhausted.
C) Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit.
D) Production occurs at the lowest average total cost.
C
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The purpose of the Current Population Survey is to determine the
A) number of people in the population. B) employment status of the population. C) age structure of the population. D) income level of the population. E) prices consumers pay for the goods and services they buy.
If firms are price setters, a small decline in the demand for their outputs will cause them to
A) reduce price and reduce the level of output produced. B) reduce output in the short run, but reduce price in the long run. C) reduce price in the short run, but reduce output only in the long run. D) increase price in the short run to offset the effect on profits of a decline in output.
Workers in country A receive an increase in wages of 10 percent at the same time the inflation rate in country A is 8 percent. Workers in country B receive an increase in wages of 3 percent and the inflation rate in country B is 1 percent. In which country are workers better off?
a. Country A because their real wages rise by 18 percent. b. Country A because their real wages rise by 10 percent. c. Country B because the inflation rate is lower. d. Neither country because the increase in real wages is the same.
The region of the country that is least hospitable to union organizing is the ___________.
Fill in the blank(s) with the appropriate word(s).