Cyclical unemployment is
A. the unemployment due to the unemployment benefits and welfare programs of the government.
B. the difference between the actual unemployment rate and the natural rate of unemployment.
C. the unemployment due to union activities and government-imposed restrictions to entry into specific occupations.
D. the difference between the unemployment rate when the economy is in a recession and the unemployment rate when the economy is at the peak of an expansion.
Answer: B
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A product whose production requires a relatively high capital-labor ratio is
a. capital abundant b. capital intensive c. heavy industry d. high tech e. all of the above
If two indifference curves were to intersect at a point, this would violate the assumption of
A) transitivity. B) completeness. C) Both A and B above. D) None of the above.
Suppose everyone in a town prefers spending on improved public transportation systems instead of public parks, and prefers spending on public parks instead of building a public zoo. A voting system that would ensure that zoo funding would never beat spending on transportation would demonstrate which criteria for an ideal voting system?
A. No dictator B. Transitivity C. Independence of irrelevant alternatives D. Unanimity
Figure 11-8
Given the average cost curve shown in Figure 11-8 for dry cleaning, where Q1 is the quantity demanded in a small town, and Q2 for a larger town, you would expect dry cleaning to be a monopoly
a.
in a small town, but not a large one.
b.
in both large and small towns.
c.
in a large town, but not a small one.
d.
only if the process is patented.