Do policy makers know the level of unemployment that is associated with “full employment”?
A. Yes, economists have the precise level of unemployment that is full employment.
B. Yes, although there is a small range of uncertainty in this measure.
C. No, economists have no idea what this level of unemployment is.
D. No, this number is not known with complete accuracy.
Answer: D
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Refer to the table above. Which of the following is likely to be true in this case?
A) Laborland's terms of trade will improve. B) Laborland's economy will go into a recession. C) There will be a surplus in Laborland's financial account. D) There will be a deficit in laborland's financial account.
If firms in monopolistic competition are earning economic profits, eventually
A) they shut down. B) they exit the industry. C) the market turns into a monopoly. D) new firms enter the industry. E) the firms in the market increase their production so that their economic profit disappears.
The marginal revenue product of labor equals
a. MP/wage b. change in total revenue/change in units of labor c. change in total revenue times the change in units of labor d. P/MP e. MP ? wage
Suppose that in 2012 MBI Corp. produced 100 million units of a good at an average cost of $6, and in 2013 MBI Corp. expanded its plant capacity and produced 200 million units at an average cost of $6.20. In this range, one can conclude that MBI Corp. is experiencing:
A. economies of scale. B. diseconomies of scale. C. neither economies of scale nor diseconomies of scale. D. increasing marginal product.