The measured unemployment rate will be understated when
A) unemployed workers become discouraged and drop out of the labor market.
B) unemployed people that are not actively looking for a job are not counted as part of the labor force
C) people pretend to be looking for a job
D) All of these.
A
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The figure above shows the market for pants. If 6 million pairs of pants are produced, the deadweight loss is
A) zero. B) the triangle ABE. C) the triangle BCE. D) the triangle ACE. E) the triangle BCE minus the triangle ABE.
A natural monopoly exists when
a. economies of scale are negligible b. there are a few dominant firms that corner the market c. one firm can produce the market output at lower average cost than two or more firms can d. barriers to entry are low e. only a few firms can minimize cost and maximize profit
The reason why cleanup costs are lower for a taxes approach than for a direct controls approach is that
a. all firms reduce pollution equally and fairly. b. firms that are able to clean up at lowest cost do so; others don't. c. large polluters clean up the most, which is always lowest cost. d. small polluters clean up the most, which is generally the cheapest.
P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. 
Given the information in this decision tree, if QRS-TV announces that it will air a sitcom, it can expect to:
A. earn $10 million. B. earn $5 million. C. lose $5 million. D. earn $20 million.