If the amount paid as unemployment benefits decreases, the opportunity cost of job search
A) falls and people stay unemployed for a shorter time.
B) rises and people would stay unemployed longer.
C) rises and people stay unemployed for a shorter time.
D) falls and people stay unemployed for a longer time.
E) is not affected because unemployment benefits do not change job availability.
C
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If a competitive firm’s short-run average cost curve lies above the price of the product, we can conclude that the firm
A. is earning a huge profit. B. is incurring losses. C. is earning zero economic profits. D. is earning a normal profit.
If a firm increases production, then its:
A. variable costs rise. B. fixed costs stay the same. C. total costs increase. D. All of these are true.
If there is both a decrease in immigration and an increase in workers' non-wage incomes, a. the supply of labor will increase
b. the supply of labor will decrease. c. the supply of labor will remain unchanged. d. the effect on the supply of labor will be indeterminate.
The real-business-cycle theory:
A. is a monetarist view of the business cycle. B. is the mainstream view of the business cycle. C. assumes that the supply of money is constant. D. says that macro instability results from shifts in the long-run aggregate supply curve.