In Figure 9.5, a movement from Point A to Point B would result from

A. An increase in disposable income.
B. An improvement in expectations for future sales.
C. An increase in the interest rate.
D. A decrease in wage costs.


Answer: B

Economics

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If unemployment is at the natural rate, then there

A) is no cyclical unemployment. B) is no frictional unemployment. C) will be cyclical and frictional unemployment but not structural unemployment. D) will be only cyclical unemployment.

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An efficiency wage is

A) lower than a living wage. B) unfair to employers. C) a wage rate above the employees' opportunity cost. D) unlikely to be paid when monitoring is available.

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When the market is in equilibrium, with no government intervention,

a. Total surplus is minimized b. Total surplus is maximized c. Government maximizes total revenue d. None of the above

Economics

This profit-maximizing firm is making a profit or loss of about __________.


A. $800
B. $710
C. $510
D. $310

Economics