According to Okun's law, if the cyclical unemployment rate increases by 3 percentage points, real GDP growth will decrease by about 3 percentage points
Indicate whether the statement is true or false
FALSE
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It is important for a business owner to understand the market structure in which they operate because:
A. it defines how much freedom they have to set prices. B. it will tell how much attention to pay to competitors’ behavior. C. it can help in deciding whether to advertise. D. All of these statements are true.
If an oligopolistic manufacturer believes that he faces a kinked demand curve for his product, he thinks his competitors will ____ if he lowers his price and ____ if he raises his price
a. lower their prices; raise their prices. b. lower their prices; not raise their prices c. not lower their prices; raise their prices d. not lower their prices; not raise their prices
In the real loanable funds market, the vertical and horizontal axes, respectively, are:
a. Nominal interest rate and nominal loanable funds. b. Real interest rate and real loanable funds. c. Real, risk-free interest rate and real loanable funds per time period. d. Real, risk-free interest rate and real loanable funds. e. None of the above.
Under which of the following scenarios would a park be considered a club good?
a. Visitors to the park must pay an admittance fee, but there are always plenty of empty picnic tables. b. Visitors to the park must pay an admittance fee and frequently all of the picnic tables are in use. c. Visitors can enter the park free of charge and there are always plenty of empty picnic tables. d. Visitors can enter the park free of charge, but frequently all of the picnic tables are in use.