The economic principle that "unemployment rate will tend to increase as the economy moves into a recession" is an example of:
A. A normative statement
B. An assumption
C. A loaded terminology
D. A generalization
Answer: D
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Resources are used to create goods and services.
Answer the following statement true (T) or false (F)
The quantity of DVD players purchased declined in spite of a decline in price. This implies that the
A. supply curve for DVD players shifted to the left. B. demand curve for DVD players shifted to the right. C. demand curve for DVD players shifted to the left. D. supply curve for DVD players shifted to the right.
The distinguishing feature of a well-functioning financial market is the
A) continual increase in the liquidity of most assets. B) continual reduction in the riskiness of most assets. C) increased ease of converting common stocks into bonds. D) incorporation of available information into asset prices.
The figure below shows the demand for meals at lunch and dinner for a proposed new restaurant. Suppose the marginal cost of a meal (both lunch and dinner) is constant at $10 per meal and marginal cost of providing the capacity is constant at $5 per meal. Once the managers have determined the profit-maximizing capacity, at lunch they will serve ________ meals and set a price of ________ per meal.
A) 800; $30 B) 200; $20 C) 200; $30 D) 600; $30