Explain What Effect an Increase in the Unemployment Rate Will

question 63

Essay

Explain what effect an increase in the unemployment rate will have on the real wage based on: (1)the WS relation; and (2)the PS relation.

Comprehend the relationship between economic profit, accounting profit, and normal profit.

Identify the components of total production costs from an economist's perspective.

Understand the difference between implicit costs and explicit costs.

Define economic cost and its significance in decision making.