Suppose that output in an economy is 1,000 units and the number of hours worked in the economy is 40. If the economy enters a recession, which of the following combinations of output and hours worked would best reflect the recession?
A. 800 units of output and 30 hours worked
B. 1,000 units of output and 40 hours worked
C. 500 units of output and 20 hours worked
D. 600 units of output and 25 hours worked
Answer: D
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Most app developers have adopted the business model of
A) charging a between $1.99 and $2.99 for their apps to be downloaded. B) allowing their apps to be downloaded and used for free, while trying to still earn money from users. C) charging a small fee for their apps to be downloaded. D) allowing their apps to be downloaded to one device for free, but charging a high price for the apps to be downloaded to additional devices.
According to the party cycle theory, recessions
a. will be nonexistent in the near future. b. are most apt to occur when a liberal president is elected. c. are most likely to occur during the first couple of years following the election of a conservative president. d. are here to stay.
In the short run, average variable costs are minimized when
A) MPL equals APL. B) APL is maximized. C) MPL is maximized and APL is increasing. D) Both A and B.
Vertical integration can lower firms' costs through each of the following except which one?
A) creating synergies B) increasing the required areas of managerial expertise C) increasing flexibility by eliminating a contract with an input supplier D) reducing information costs