Economists define full employment as the level of employment that results when
a. the economy is in an economic boom.
b. the rate of unemployment is zero.
c. the rate of unemployment has fallen to its historical low of approximately two percent.
d. the rate of unemployment is normal, considering both frictional and structural factors.
D
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Which of the following is an example of opportunity cost not measured by money cost?
A. The time spent eating a business lunch at a restaurant B. The time spent preparing a meal eaten at home C. The time spent studying to obtain an “A” in economics D. The time spent repairing a car in one’s own garage E. All of the responses are correct.
A difference in wage rates that results from a difference in working conditions
a. is known as a compensating wage differential b. is known as an equalizing differential c. reflects a difference in marginal productivity d. reflects job-market discrimination e. will be eliminated if all labor markets are perfectly competitive
Marginal product and average product are measured in
A) dollars. B) profit terms. C) units of production. D) the same units as marginal cost and average total cost.
Interest rates are positive because
A. people prefer future consumption over current consumption. B. usury laws require rates to be very high. C. banks are not competitive. D. people prefer current consumption over future consumption.