The natural rate of unemployment when seasonally adjusted includes
A) frictional and structural unemployment but not cyclical.
B) frictional and cyclical unemployment but not structural.
C) frictional unemployment only.
D) cyclical and structural unemployment but not frictional.
Ques. 2A market situation in which a large number of firms produce similar but not identical products is called
A) pure monopoly.
B) monopolistically competitive.
C) oligopolistic behavior.
D) perfectly competitive.
Ques. 3The concept that Mr. Jones is going to enjoy the benefits of police protection even though he no longer pays taxes is called
A) the free-rider problem.
B) the negative externality principle.
C) the principle of rival consumption.
D) the principle of anti-trust.
Ques. 4Refer to the above figure. A shortage occurs if the government imposes
A) a price floor at 60.
B) a price floor at 20.
C) a price ceiling at 60.
D) a price ceiling at 20.
Ques. 5Explain why there is a direct relationship between price and quantity supplied.
What will be an ideal response?
Ques. 6A production possibilities curve will shift inward
A) when the unemployment rate increases.
B) when production is inefficient.
C) when resources are expanding.
D) when a war destroys the capital goods of a country.
Ques. 7An unregulated natural monopolist would produce to the point at which
A) P = AC.
B) MR = AC.
C) MR = MC.
D) P = MR.
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