Suppose a duopoly had reached the monopoly outcome and then the first firm increased its production. If the second firm next increases its production, the second firm's profit ________ and the first firm's profit ________
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) increases; does not change
B
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Joe has been unable to find a job because he lacks the necessary computer skills. Joe is
A) cyclically unemployed. B) skill-set unemployed. C) frictionally unemployed. D) structurally unemployed. E) educationally unemployed.
An assumption of the neoclassical theory of growth is that
A) people receive only subsistence real GDP per person. B) all technological advances are the result of chance. C) the marginal product of all types of capital increases as more capital is accumulated. D) knowledge has diminishing returns.
The income approach to measuring GDP involves adding up the following ________
A) household income and income generated by firms B) private spending, tax revenues and government spending C) transfer payments and income taxes D) interest income, profits and social security benefits E) wages, benefits and interest income
Explain why economists abandoned the Humphrey-Hawkins Act of 1978 as target policy