The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier.
B. self-correcting property.
C. short-run equilibrium property.
D. long-run equilibrium property.
Answer: B
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Suppose the airplane market is an oligopoly. According to the figure above, the quantity produced can range as high as ________ planes per week and as low as ________ planes per week
A) 10; 4 B) 12; 6 C) 6; 0 D) 12; 0 E) None of the above answers is correct.
Unemployment that occurs from fundamental technological changes in the production, or from the substitution of new goods for customary ones, is known as:
a. underemployment. b. seasonal unemployment. c. frictional unemployment. d. structural unemployment. e. cyclical unemployment.
Suppose that Megabucks Corporation is earning an economic profit of $4,000 through the sale of a product. If the price of the product is $6 per unit and its ATC is $4 per unit, Megabucks must be producing 8,000 units
a. True b. False Indicate whether the statement is true or false
Mary has opened a preschool, which involves paying rent on the building, playground improvements, and teacher salaries. She spreads the word through advertising and social media to attract families. During the first year, Mary takes no salary while the school is getting off the ground. Which of these constitutes implicit costs for the preschool business?
a. Attracting families through social media is free, so it is an implicit rather than explicit cost. b. Paying rent is an implicit cost because starting a preschool implies needing a physical location. c. Teacher salaries are an implicit cost because a school must have teachers. d. Forgoing a year’s salary is an implicit cost because it represents a resource contributed by the owner.