Last year, the nominal interest rate was less than the anticipated rate of inflation
A) This means that not enough loans were made by banks.
B) This means that the real interest rate was negative.
C) This means that the real interest rate was very high.
D) This scenario is not possible.
B
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Technological change that increases the marginal productivity of labor in the classical model would cause
a. labor demand, output and the price level to rise. b. labor demand to fall, the price level to fall, and output to rise. d. labor demand, output and employment to rise. c. output to rise but labor demand to fall.
What is one reason firms might lobby to prevent entry into their market?
A) The long run equilibrium might be characterized by P = MC = ATC. B) The long run equilibrium might be characterized by P = MC < ATC. C) The long run equilibrium might be characterized by P > MC = ATC. D) The long run equilibrium might be characterized by P = MC > ATC.
An increase in unemployment insurance benefits will:
A. increase the demand for labor. B. decrease job search efforts of unemployed workers. C. increase job search efforts of unemployed workers. D. decrease the demand for labor.
Figure 11-5
In Figure 11-5 are the cost and revenue curves of a monopolist in the theater market, Crown Theater, which is the only movie theater in the city. At its profit-maximizing quantity of tickets sold, movie goers will buy ____ tickets.
a.
60
b.
100
c.
120
d.
140