Why is there a lag between the end of a recession and the peak in the unemployment rate?
A. workers would rather draw unemployment than return to work.
B. the first workers recalled are continuing to work part time and when they return to full time employment it does not change the number of people employed.
C. reemployment is not recognized until later because of the way data are collected.
D. the company has a hard time finding new employees.
B. the first workers recalled are continuing to work part time and when they return to full time employment it does not change the number of people employed.
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The term "twin deficits" refers to
A) government budget and trade deficits. B) saving and investment deficits. C) exports and imports deficits. D) production and expenditure deficit.
In general, when the price of a variable factor of production increases:
A. marginal cost rises. B. the profit-maximizing price falls. C. the profit maximizing level of output rises. D. total cost falls.
The marginal revenue curve for a monopolist:
A. is a straight, upsloping curve. B. rises at first, reaches a maximum, and then declines. C. becomes negative when output increases beyond some particular level. D. is a straight line, parallel to the horizontal axis.
In Figure 8.10, airline Fly Smart is initially a secure monopoly between two cities X and Y at point M, serving 300 passengers per day at the profit-maximizing price of $300 per ticket. Suppose that Fly Smart discovers that a second airline is contemplating entering the market. If the minimum market entry quantity is zero passengers per day, what is Fly Smart's profit when it commits to the entry-deterring quantity?
A. $60,000 B. $44,400 C. $33,600 D. $0