A reduction in sales will generally cause
A) an increase in profit per unit of capital.
B) a decrease in profit per unit of capital.
C) no change in profit per unit of capital.
D) ambiguous effects on profit per unit of capital.
E) none of the above
B
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In recent times, there has been a decline in the sale of newspapers in the U.S. as people prefer to read the news on the internet. This has caused many newspaper journalists to lose their jobs. This is an example of: a. structural unemployment. b. frictional unemployment. c. cyclical unemployment
d. seasonal unemployment. e. underemployment.
A monopolist faces the trade-off that a higher price leads to a lower quantity demanded. This means that the monopolist faces a(an):
a. downward-sloping demand curve. b. upward- sloping demand curve c. horizontal demand curve. d. vertical demand curve.
The Bureau of Labor Statistics is part of the U.S. Department of Labor
a. True b. False Indicate whether the statement is true or false
Answer the following questions true (T) or false (F)
1. When the Federal Reserve increases the money supply, people spend more because interest rates fall. 2. Contractionary monetary policy refers to the Fed's decreasing the money supply and decreasing interest rates to decrease real GDP. 3. Your income will increase if the Federal Reserve buys a Treasury bill from you and pays you with a check from the Fed.