When two single-product firms that produce complimentary products merge into a single firm, that firm will want to raise prices of the two products
Indicate whether the statement is true or false
F The merged firm will lower prices of the two complements, as each lower price will stimulate demand for the other product.
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Which of the following groups of people would be included in the official unemployment rate?
a. part-time workers b. workers temporarily laid off from jobs to which they expect to return c. discouraged workers d. all of the above
When an employer pays the cost of educating a worker, it is likely that the employer
a. is demonstrating altruistic motives. b. is pursuing some objective other than profit-maximization. c. hopes to recapture its investment in the form of increased labor productivity. d. receives reimbursement from the government for the cost of the education.
Which of the following is not included in the investment component of GDP?
a. The purchase of 100 shares of stock. b. The purchase of a $1000 bond. c. A firm's purchase of a used van to use for deliveries. d. None of the above are included in the investment component of GDP.
When actual GDP goes below potential GDP, it means that
A. deflation is imminent. B. economic activity has slowed. C. economic activity has increased. D. inflation is imminent.