Goodland is currently operating at full capacity. The country experienced a sudden boom in economic activity. However, the unemployment rate increased soon afterwards. What is likely to have caused such a phenomenon?
What will be an ideal response?
If before the beginning of a boom, the economy is close to full employment and full capacity utilization, there will be relatively little room for the economy to grow. If so, the optimism or other factors that might have originally triggered the boom are likely to get reversed at some point. This is most likely to have happened in this case.
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As perfectly competitive firms leave a market because they are incurring an economic loss, the price of the good ________ and the economic loss of each remaining firm ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases
The definition of the adult population is those who are 16 years and older and who are
A) employed or unemployed. B) in the labor force. C) in the labor force or not in the labor force. D) not in the labor force.
Refer to the above figure. For which Lorenz curve does the richest 25 percent make 50 percent of the nation's money income?
A) A B) B C) C D) D
The law of demand states that
a. there is a positive relationship between price and quantity demanded b. price is the only factor that influences the quantity that people are willing and able to buy c. price and quantity demanded are inversely related d. the demand curve shifts whenever the price of a good changes e. by producing a product, firms create a demand for it