If the Economy Is at Full Employment

question 107

Multiple Choice

If the economy is at full employment,

• A)the entire population is employed.
• B)the entire labour force is employed.
• C)the only unemployment is frictional unemployment plus discouraged searchers.
• D)real GDP equals potential GDP.
• E)all unemployment is cyclical and structural.

Examine the effects of changes in supply and demand on interests and rents.

Understand the concept of economic profit versus salaries and its significance in business.

Discern the difference between insurable and uninsurable risks in entrepreneurship.

Recognize the functions and effects of economic policies on the supply of loanable funds and investment rates.

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Definitions:

Job Order Cost System

An accounting system that accumulates costs by individual jobs, used in industries where goods are produced to customer specifications.

Personal Computers

Electronic devices designed for individual use, typically offering a range of applications and internet access.

Requisitions

Requests or demands for the use or purchase of supplies or equipment within an organization.

Direct Materials

Ingredients essential to the production process that can be directly linked to the creation of a final product and are a fundamental component of it.