If price is above average total costs, the firm
A. is earning negative profits.
B. may be earning a positive or negative profit depending upon costs.
C. is earning positive profits.
D. is making a normal rate of return on its capital investment.
Answer: C
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Inflation plays a major role in determining whether a currency is appreciating or depreciating
a. True b. False Indicate whether the statement is true or false
Monetary policy should be countercyclical, which implies that it should be loosened during a recession and tightened during periods of inflation
a. True b. False Indicate whether the statement is true or false
The money supply in Macroland is currently 2,500, bank reserves are 200, currency held by public is 500, and banks' desired reserve-deposit ratio is 0.10. Assuming the values of the currency held by the public and the desired reserve-deposit ratio do not change, if the Central Bank of Macroland wishes to increase the money supply to 3,000, then it should conduct an open-market ________ government bonds.
A. sale of 50 B. sale of 500 C. purchase of 250 D. purchase of 50
Which of the following best describes what W 2 represents in the context of a skill- biased technical change?
a. the new union wage
b. the new equilibrium wage
c. the new efficiency wage
d. the new minimum wage