Answer the following questions true (T) or false (F)
1. A decrease in liabilities will reduce a firm's accounting profit.
2. Economic profit is the difference between a firm's revenue and its opportunity costs.
3. An increase in liabilities will reduce a firm's net worth.
1. FALSE
2. TRUE
3. TRUE
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Suppose the working-age population of a fictional economy falls into the following categories: 90 are retired or homemakers; 60 have full-time employment; 20 have part-time employment; 20 do not have employment, but are actively looking for
employment; and 10 would like employment but do not have employment and are not actively looking for employment. The official unemployment rate as calculated by the U.S. Bureau of Labor would equal A) (20/80 ) × 100. B) (20/60 ) × 100. C) (30/80 ) × 100. D) (20/100 ) × 100.
If the natural rate of unemployment declines ________
A) labor is more heavily utilized B) potential output increases C) the long run aggregate supply curve shifts to the right D) all of the above E) none of the above
Total spending on final goods and services in an economy must equal total:
A. production value. B. revenues from all transactions. C. profits. D. investment.
Recently, Lisa's wealth increased by $500 . If her wealth were to increase by another $500 in the near future, then her utility would increase, but not by as much as it increased with the recent increase to her wealth. Based on this information, Lisa's utility function
a. and marginal utility function are both upward sloping. b. and marginal utility function are both downward sloping. c. is upward sloping and her marginal utility function is downward sloping. d. is downward sloping and her marginal utility function is upward sloping.