In an expansion, the cyclical rate of unemployment is often:
A. zero.
B. negative.
C. equal to the natural rate of unemployment.
D. positive.
Answer: B
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The principal-agent problem:
A. is caused by the principal having imperfect information about the agent. B. is caused by the principal being unable to perfectly observe the actions of the agent. C. arises from an imbalance of information. D. All of these statements are true.
Using Figure 1 below, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2.
B. P3 and Y1.
C. P2 and Y3.
D. P2 and Y2.
Which of the following would be classified as unemployed?
a. mothers who choose to stay at home with their preschool-age children b. retirees who are no longer working at a job c. students attending school full time d. a 20-year old looking for her first job
If a price taker in a competitive market is going to maximize profits, he must
a. increase the price of his product. b. minimize his fixed costs of production. c. minimize the per-unit cost of producing the good. d. use the highest valued set of resources to produce his product.