The above figure shows a perfectly competitive firm. If the market price is $15, the firm
A) is incurring an economic loss.
B) is making an economic profit.
C) is making zero economic profit.
D) will immediately shut down.
E) might shut down but more information is needed about the AVC.
B
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Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's
a. proprietary knowledge. b. technological knowledge. c. human capital. d. physical capital.
Which of the following is true?
a. The natural rate of unemployment is present when the economy is operating at full employment.
b. The natural rate of unemployment is equal to the number of persons unemployed divided by the number of persons in the labor force.
c. The natural rate of unemployment is primarily the result of the ups and downs of the business cycle.
d. Public policy cannot influence the natural rate of unemployment.
If the marginal propensity to consume (MPC) is 0.80, the value of the spending multiplier is:
A. 2. B. 5. C. 8. D. 10.
Youland is hit by a recession. What will be the impact of a countercyclical policy on labor demand in Youland if nominal wages are downwardly rigid?
What will be an ideal response?