What can be concluded about the total profit?
a. It would be greater if the cartel members raised their output.
b. It would be greater if the ATC was higher.
c. It would be shared by the cartel members.
d. It would be maximized at P* = ATC.
c. It would be shared by the cartel members.
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An open market sale
A) decreases the price of Treasury securities and also decreases their yield. B) increases the price of Treasury securities and decreases their yield. C) increases the price of Treasury securities and also increases their yield. D) decreases the price of Treasury securities and increases their yield.
Which of the following statements about U.S. inflation is not correct?
a. Low inflation was viewed as a triumph of President Carter's economic policy. b. There were long periods in the nineteenth century during which prices fell. c. The U.S. public has viewed inflation rates of even 7 percent as a major economic problem. d. The U.S. inflation rate has varied over time, but international data show even more variation.
The Laffer curve shows as tax rates rise, tax revenue:
A. rises. B. first rises, then falls, and then rises again. C. falls. D. first rises, and then falls.
In terms of the musical chairs analogy in the text, which of the following is a description of structural unemployment?
A. There are too many chairs. B. There are enough chairs, but it takes time to find one. C. There are too few chairs. D. There are enough chairs, but some are not the right size.