Maurice loses his job and decides to sit on the beach rather than looking for work the next few months. Other things the same, the unemployment rate
a. increases, and the labor-force participation rate is unaffected.
b. increases, and the labor-force participation rate decreases.
c. decreases, and the labor-force participation rate increases.
d. decreases, and the labor-force participation rate decreases.
Ans: b. increases, and the labor-force participation rate decreases.
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A monopoly definitely incurs an economic loss if
A) it produces where its marginal revenue equals its marginal cost. B) its average total cost is greater than price. C) it cannot perfectly price discriminate. D) it price discriminates. E) The statement errs because a monopoly cannot incur an economic loss.
"Reducing taxes increases incentives to work and save.". This view is typically associated with
a. Keynesian economics. b."Reagonomics.". c. Johnson's "Great Society" policies. d. the Carter administration.
Jose's restaurant operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $20, AVC = $15, and the price per unit is $10 . In this situation,
a. Jose's restaurant is earning a positive economic profit. b. Jose's restaurant should shut down immediately. c. Jose's restaurant is losing money in the short run but should continue to operate. d. the market price will rise in the short run to increase profits.
You may receive a margin call if
A. you have a long (buying) futures position and prices increase. B. you have a long (buying) futures position and prices decrease. C. you have a short (selling) futures position and prices decrease. D. Both A and C.