A monopoly will maximize profits at the level of output at which
A. MC = P.
B. MR = AFC.
C. MR = MC.
D. MC = ATC.
Answer: C
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The New York Times reported in November 2008 that 240,000 additional people lost their jobs which increased the unemployment rate to 6.5 percent
In addition, it was noted that a large number of college graduates were "taking jobs that do not require a college degree." It was also expected that "teens will be thrown out of the labor market....causing youths to miss experience" that could help them prepare for higher-skilled jobs. The article reflects the idea that unemployment is a problem because it results in A) a loss of human capital. B) fewer discouraged workers. C) a loss of income. D) a decrease in the labor force.
When the government runs deficit, it causes the cost of borrowing to:
A. increase, which decreases private demand for loanable funds. B. decrease, which decreases private demand for loanable funds. C. increase, which increases private demand for loanable funds. D. decrease, which increases private demand for loanable funds.
During recessions
a. sales and profits fall. b. sales and profits rise. c. sales rise, profits fall. d. profits fall, sales rise.
Why do markets exist?
a) Markets ensure that government does not intervene in the production of goods and services b) Markets provide self-sufficent people with public places for the exchange of ideas c) Markets ensure economic equity for all people d) Markets allow people to buy what they need to consume and sell the specialized goods and services they produce