This profit-maximizing (loss-minimizing) firm is making a profit or loss of about _________.
A. $1,400
B. $225
C. $0
D. -$225
C. $0
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When the economy enters into a recession, your employer is ________ to reduce your wages because ________
A) likely; aggregate demand is vertical in the long run B) unlikely; lower wages reduce productivity and morale C) likely; output prices always fall during recession D) unlikely; output and input prices generally fall during recession
In an economy that has no foreign trade, if real GDP declines by $160 million following a decline in investment spending of $40 million, then the marginal propensity to consume must be equal to _____
a. 2 b. 0.33 c. 4 d. 0.75 e. 0.4
Jordan and Jennifer are musicians in New Orleans. Ezra is a musician thinking about moving to New Orleans. Which of the following statements is correct?
a. The wage needed to keep Jordan and Jennifer in the New Orleans music industry in the long run will be lower than the wage needed to keep them in the industry in the short run. b. The costs of entering the New Orleans music industry are sunk costs for Jordan, Jennifer, and Ezra. c. The costs of entering the New Orleans music industry are sunk costs for Ezra but not for Jordan and Jennifer. d. The wage needed to induce Ezra to enter the New Orleans music industry will be lower than the wage needed to keep him in the industry after he enters. e. The costs of entering the music industry in New Orleans are sunk costs for Jordan and Jennifer, but not for Ezra.
When computing the opportunity cost of attending a basketball game you should include
a. the price you pay for the ticket and the value of your time. b. the price you pay for the ticket, but not the value of your time. c. the value of your time, but not the price you pay for the ticket. d. neither the price of the ticket nor the value of your time.