When jobs are easy to find, wage increases are frequently given, and businesses are doing well, the economy is most likely in a(n):
A. expansion.
B. surplus.
C. depression.
D. recession.
Answer: A
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Utilitarianism is based on the argument that
A) the greater a person's income, the smaller is the marginal benefit of a dollar. B) by transferring a dollar from a millionaire to a poor person, more is lost than gained. C) taxing people's income from employment makes them work less. D) a dollar taken from a rich person does not end up as a dollar in the hands of a poorer person.
The two kinds of yields used in the Treasury bill market are the
A) coupon equivalent yield and yield on a discount basis. B) face yield and discount yield. C) nominal yield and real yield. D) yield to maturity and coupon equivalent yield.
A firm is currently producing at the point where MC = MR. The situation for the firm at this point is P = $5, Q = 100, ATC = $6, AVC = $4.50. What do you recommend this firm do?
A) Increase production above the current output rate, because MC = MR at this rate of output. B) Continue to produce the current output rate, because P > AVC. C) Shut down, because AVC > P. D) Shut down, because ATC > P.
A firm should make an investment only if
A. it is profitable in every year. B. the present value of the profits exceeds the present value of the costs. C. the present value of the revenues exceeds the present value of the costs. D. there are no large losses in the early years.