Underemployment occurs:
A. when workers do not have jobs.
B. when farm workers become more productive.
C. when workers are working fewer hours than they desire or when they are working less
productively than they are capable.
D. in IACs but not in the DVCs.
C. when workers are working fewer hours than they desire or when they are working less
productively than they are capable.
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If the desired reserve ratio increases, then
A) banks' desired reserves increase and their excess reserves decrease. B) bank customers become more willing to make deposits in banks. C) banks are able to make more loans. D) banks can buy more government securities. E) the Fed has supplied banks with more reserves.
The table above shows techniques that can be used to produce 100 shirts. If the price of an hour of labor is $20 and the price of a unit of capital is $8, then the economically efficient technique is
A) W. B) X. C) Y. D) Z.
The table above gives the demand for a monopolist's output. What is the marginal revenue when output is increased from 5 to 6 units?
A) $18 B) $4 C) $3 D) -$2
A striking conclusion of the Solow model is that in the absence of productivity growth, in the long run
A) the economy reaches a steady state. B) consumption per worker equals the capital stock per worker. C) consumption per worker equals output per worker. D) consumption per worker equals investment per worker.