During the Great Depression, cyclical unemployment increased as the recession continued. This increase in cyclical unemployment
A) increased the natural rate of unemployment.
B) could have increased or decreased the natural rate of unemployment.
C) decreased the natural rate of unemployment.
D) had no effect on the natural rate of unemployment.
D
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Comparative advantage is determined by
A) actual differences in labor productivity between countries. B) relative differences in labor productivity between countries. C) Both A and B. D) Neither A nor B.
Implicit costs are costs that:
A. require a firm to spend money. B. represent forgone opportunities. C. do not depend on the quantity of output produced. D. depend on the quantity of output produced.
When choosing the production level for tomorrow you find that at an output of 100 units, the total variable costs are $20,000 and the average fixed cost is only $50 . If the market price is $200, you should:
a. b or e. b. shut down. c. produce more than 100 units. d. produce fewer than 100 units. e. produce where MC = MR.
Profits are maximized when
A) price equals marginal revenue. B) marginal revenue equals average total costs. C) marginal revenue equals marginal cost. D) when price equals average total costs.