Classical economists contend that official measures of unemployment:
A. understate the problem due to the existence of discouraged workers.
B. overstate the problem because most unemployment is cyclical.
C. overstate the problem because most unemployment is voluntary.
D. understate the problem due to involuntary part-time employment.
Answer: C
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The ________ nature of patents attempts to balance the social gain from the product against the ________.
A) temporary; competitive firm's economic profit from the product B) permanent; competitive firm's economic profit from the product C) temporary; deadweight loss to society D) permanent; deadweight loss to society
Which of the following is a form of statistical discrimination?
a. Young people are charged higher automobile insurance rates due to the higher probability of an accident. b. Restaurants prefer to hire women than men as servers. c. Women prefer to see a female doctor than a male doctor. d. Women are more likely than men to pay too much money for a new automobile because salespeople bargain more with men than with women. e. Female physicians earn 20 percent less than male physicians, on average.
________ are forces that cause a reduction in a firm's average cost as the scale operation increases in the long run. ________ are forces that cause a firm's average cost to increase as the scale of operation increases in the long run
a. Diseconomies of scale; economies of scale. b. Economies of scale; diseconomies of scale. c. Increasing returns to a factor; decreasing returns to a factor d. Decreasing returns to a factor; increasing returns to a factor
Suppose the McCormick Corporation releases an earnings report that fails to meet the market's expectations. What does the efficient markets hypothesis predict will happen to McCormick's stock price?