Which of the following statements is CORRECT?
A) A firm does not need to take into account its sunk cost when making current decisions.
B) Long-run decisions are easily reversed.
C) Short-run decisions are not easily reversed.
D) In the long run, a firm can change its plant but not the quantity of its labor.
A
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The increase in the unemployment rate during a recession is associated with which type of unemployment?
A. Structural unemployment B. Cyclical unemployment C. Nominal unemployment D. Frictional unemployment
A minimum wage that is set below the equilibrium wage will
a. cause increased unemployment b. have no effect on employment c. cause the overall wage to increase d. cause the overall wage to decrease e. create more jobs
Which of the following appears on the asset side of a bank's balance sheet?
a. Loans b. None of the answers are correct. c. Required reserves d. All of the answers are correct. e. Excess reserves
Which of the following is the best example of a market that exhibits network externalities?
A. Education B. Agriculture C. Electricity D. Social media