Rational people make decisions "at the margin" by comparing
a. average costs and benefits.
b. total costs and benefits.
c. additional costs and benefits.
d. opportunity costs and benefits.
c
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The natural rate of unemployment includes
A) frictional and cyclical unemployment. B) frictional unemployment and structural unemployment. C) only cyclical unemployment. D) only unemployment due to layoffs and corporate downsizing.
An increase in investment causes the price level to ________ in the short run and ________ in the long run
A) decrease; increase B) increase; increase further C) increase; decrease D) decrease; decrease further
Suppose that a non-discriminating monopolist lowers its price from $75 to $70 in order to sell more output. Marginal revenue will
a. equal $75 b. equal $70 c. be between $75 and $70 d. be less than $70 e. be greater than $75
Malfeasance at Enron, a Houston-based energy firm, led to overstatement of revenues by almost $92 billion. As Enron closed its operations, U.S. energy prices remained stable. This may have been evidence that
A. there was lack of any competition, so Enron was the winner. B. Enron could charge whatever price it wanted to for energy. C. the accounting profession needs to review its policies quickly. D. there is a competitive market in energy distribution in the United States.