When isoquants get progressively further apart there is
a. increasing returns to scale
b. decreasing returns to scale
c. constant returns to scale
b
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According to the cost disease of the personal services, service activities that require direct personal contact
A. tend to fall in price relative to other goods and services. B. tend to rise in price relative to other goods and services. C. follow price patterns similar to other goods and services. D. tend to move up and down in price ignoring the rest of the market.
Which of the following is an example of structural unemployment?
A. Alan, a software engineer, lost his job when the internet startup he worked for went bankrupt. He interviewed with five companies in the area before taking a job with another firm in the industry. B. Dora lost her job when the textile factory closed. She does not have skills to work in another industry and has been unemployed for over a year. C. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. D. Jim had a job as an engineer, but quit when his wife was transferred to another state. He looked for a month before finding a new job that he liked.