What is meant by the term "the natural rate of unemployment"?
What will be an ideal response?
The natural rate of unemployment is the level of unemployment at which there is no cyclical unemployment. It consists only of frictional and structural unemployment.
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At a Mufflers-R-Us repair shop customers have the opportunity to wait in a room with chairs, a television, magazines, coffee and donuts. The economic way of thinking suggests the muffler shop is
A) selling mufflers below cost. B) selling the additional goods and services below cost. C) attempting to increase its total profit D) engaging in unfair trade practice because it provides the goods and services free of charge. E) almost certainly doing none of the above.
The demand for a productive resource, not for its own sake, but for use in the production of goods and services is called a ________
A) goods and services demand B) production demand C) derived demand D) resource demand