Where it wants to produce, the firm in Figure 8.14 would be:
A. making a zero economic profit.
B. losing money.
C. making a positive economic profit.
D. breaking even.
Answer: C
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Which of the following persons is NOT considered a part of the labor force?
A) Mary, who has a part-time job as a day care specialist B) Lones, an unemployed mechanic looking for a new job C) Jameson, an accountant who has been temporarily laid off during the holiday season D) Desire, a wealthy hedge fund manager who just took early retirement E) Lucy, who works 20 hours a week in her father's restaurant for no pay
How might technological change and globalization explain trends in the distribution of income?
What will be an ideal response?
Using Taylor's rule, when the equilibrium real federal funds rate is 2 percent, there is no output gap, the actual inflation rate is zero, and the target inflation rate is 2 percent, the nominal federal funds rate should be
A) 0 percent. B) 1 percent. C) 2 percent. D) 3 percent.
The production possibilities curve shows different combinations of goods that:
a. can be consumed by households. b. can be consumed by firms. c. can be produced with the available technology. d. are produced and consumed by firms. e. are bought and sold in the market.