The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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If you have $10,000 to start a lawn-cutting business, the interest rate is 4 percent, your cost of equipment is $3,000, and the earnings you sacrifice from working at another job are $32,000, your yearly cost of doing business would be
A) $13,000. B) $13,400. C) $35,400. D) $45,000.
Bertrand price competitors can recover some market power when they differentiate their products.
Answer the following statement true (T) or false (F)
On average, someone with a Bachelor's degree is estimated to earn ____ times more than someone with a high school diploma.
A. 1.4 B: 1.5 C: 1.6 D: 1.7
When a firm's long-run average total cost falls as its output increases, the firm is experiencing
A) economies of scale. B) diseconomies of scale. C) constant returns to scale. D) decreasing marginal returns. E) decreasing cost of marginal returns.