An upward-sloping labor supply curve implies that
A. a firm can always hire more workers, even without increasing the wage.
B. more workers are willing to work as the market wage increases.
C. more workers are willing work when wages are low.
D. the labor supply is fixed.
E. there is a continuously increasing demand for labor.
Answer: B
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During the Great Recession of 2007-2009, the U.S. ________
A) experienced unprecedented declines in household wealth B) the unemployment rate more than doubled C) experienced the most severe economic downturn since the Great Depression D) all of the above E) none of the above
If a perfectly competitive firm cannot avoid economic losses, it should continue to operate in the short run as long as
a. marginal revenue exceeds average fixed cost b. price exceeds average total cost c. the market price exceeds average total cost d. the marginal revenue is less than the average variable cost e. price exceeds average variable cost
Alfonso has noticed that increases in unemployment insurance claims are associated with recessions, and therefore he advocates limits on unemployment insurance so as to prevent recessions. Mary has noticed that most drug addicts once attended schools, and therefore she advocates getting rid of schools so as to prevent drug addiction
a. The reasoning of both Alfonso and Mary suffers from the omitted variable problem. b. The reasoning of both Alfonso and Mary suffers from the reverse causality problem. c. Alfonso's reasoning suffers from the reverse causality problem, and Mary's reasoning suffers from the omitted variable problem. d. Mary's reasoning suffers from the reverse causality problem, and Alfonso's reasoning suffers from the omitted variable problem.
When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $690. When the monopolist sells three units of output, the price per unit is
A. $210. B. $230. C. $300. D. $630.