If we wanted to describe unemployment in terms of supply and demand, we could say:
A. there is a surplus of labor.
B. at the prevailing wage, the demand is greater than the supply of labor.
C. the quantity of those demanding labor is greater than those supplying labor.
D. All of these are true.
A. there is a surplus of labor.
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Suppose that the short-run price elasticity of demand for electricity is 0.03, and the long-run price elasticity of demand is 1.2. One would classify the short-run elasticity as being ________ and the long-run elasticity as being ________.
A. inelastic; unit elastic. B. elastic; inelastic. C. elastic; elastic. D. inelastic; elastic.
The circular flow is used to make the point that
A) unemployment only occurs during a recession. B) production generates income. C) rising prices never occur during times of unemployment. D) households purchase factors of production from firms.
The people most likely to pay little personal income tax to the U.S. government are
A. the middle class. B. renters. C. the very poor. D. earners of wages (as opposed to salaries).
Average variable costs equal
A. total variable costs divided by output. B. output divided by the change in total costs. C. total variable costs divided by marginal costs. D. the change in marginal costs from producing another unit of output.