If the Economy Were at Its Potential Output Level,which of the Following

question 133

Multiple Choice

If the economy were at its potential output level,which of the following would not be true?

• A)The actual unemployment rate would be greater than the natural rate.
• B)The labor market would be in equilibrium.
• C)There would be some seasonal unemployment.
• D)There would be some frictional unemployment.
• E)There would be some structural unemployment.

Understand and apply the markup percentage concept in cost-plus pricing.

Determine the most profitable product under resource constraints.

Distinguish between variable and fixed costs in pricing decisions.

Understand the variable cost method of cost-plus pricing and its application.