The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment rate turns out to be high or higher than anticipated, we would expect
A) it is more likely that an incumbent president will be re-elected.
B) that stock prices are more likely to fall.
C) that jobs are less difficult to find.
D) that investors will be more optimistic about the economy.
Answer: B
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The monopolist's outcome in the long run differs from that of the perfectly competitive firm in that it:
A. has zero profits in the long run. B. charges a price above average total costs. C. charges a price where marginal costs equal average revenue. D. charges a price equal to MC.
Suppose Erie Textiles can dispose of its waste "for free" by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces fish and bird reproduction. This causes damage to local fishermen and bird watchers. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen and bird watchers will not suffer any damage. The relevant gains and losses (in thousands of dollars) for the three parties are listed below. WithFilterWithoutFilterGains to Erie$200$400Fisherman$180$50Bird Watchers$130$25When Erie Textiles operates without a filter, the total gain (in thousands of dollars) to all three parties is ________.
A. $985 B. $510 C. $325 D. $475
Recall the Application about genetic testing and adverse selection to answer the following question(s).According to the Application, why is genetic testing causing adverse selection?
A. People who find out through genetic testing that they are more likely to get certain genetic illnesses are more likely to get insurance. B. People who find out through genetic testing that they are more likely to get certain genetic illnesses are less likely to get insurance. C. People who find out through genetic testing that they are more likely to get certain genetic illnesses are more likely to get hired by employers. D. People who find out through genetic testing that they are more likely to get certain genetic illnesses are less likely to get insured by insurance companies.
John has decided to watch the sunrise tomorrow morning. The sunrise is an example of
A. an economic good. B. an economic bad. C. a service. D. a good.