If there is unemployment and all businesses are operating at less than full capacity, then
A) society is at the wrong point on the production possibilities curve.
B) there are too many workers, and some people ought to leave the labor force.
C) we are not experiencing a net social cost to unemployment because it is offset by the capacity levels of the factories.
D) society is producing inside its production possibilities curve.
Question 2
How do economists view profits?
A) The firm's profit equals the sum of all payments to the 5 factors of production.
B) Profits are an asset the business holds.
C) Profits are guaranteed as long as a firm operates ethically.
D) Profits are one of the costs paid to a factor of production.
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