If the firms in a competitive price-searcher market are suffering short-run losses, which of the following will occur in the long run?
a. New firms will enter the industry.
b. Customers of firms that leave the industry will switch to remaining firms.
c. Firms that remain in the industry will face reduced demand.
d. Firms will continue to incur losses.
B
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A student who just graduated from college during an economic expansion but has yet to find a job would most likely be
A) structurally unemployed. B) frictionally unemployed. C) cyclically unemployed. D) seasonally unemployed.
A moderate rate of inflation is considered helpful if it: a. makes wages in labor markets rigid
b. stabilizes the interest rate. c. decreases the rate of growth in investments. d. makes wages in labor markets flexible.
Which U.S. president said, "Give me a one-handed economist. All my economists say ‘On the one hand, and then on the other hand.'"?
A) Barack Obama B) Bill Clinton C) Ronald Reagan D) Dwight D. Eisenhower E) Harry S. Truman
If 2015 is the base year and the inflation rate between 2015 and 2016 is 7.1, the price index in 2016 is
A. 171. B. 107.1. C. 92.9. D. 1.09.