Unemployment insurance has an important macroeconomic effect because it
a. props up aggregate supply.
b. props up aggregate demand.
c. props up aggregate exports.
d. helps balance the federal budget.
b
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All else constant, if the use of historic costs understates the opportunity costs associated with using a particular piece of capital, accounting profit will be understated
Indicate whether the statement is true or false
Which firm provides the better signal when trying to decide which of the firms' stock to buy?
A) Firm A, which uses an independent accounting firm for auditing. B) Firm B, which uses an internal group for auditing. C) Firm C, which has seen its stock go up by $20 per share in the last week. D) Firm D, which hasn't been under SEC investigation for over 5 years.
Which of the following is true about increasing cost industries? a. They use a large portion of available specialized input resources in production
b. In order for industry output to expand, the prices of the specialized inputs will increase. c. Expansion of industry output leads to a higher equilibrium price in the long run. d. All of the above are generally true of increasing cost industries.
If income is distributed equally in a society, the poorest fifth of the population receives
A. 5 percent of the total income. B. one-fifth as much as the richest fifth of the population. C. 20 percent of society’s total income. D. 50 percent of society’s total income.