In the simple accelerator model, if expected output declines,
A) gross investment becomes negative.
B) net investment becomes negative.
C) both gross investment and net investment become negative.
D) the desired stock of capital will become negative.
B
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What does job lock mean?
A. A tendency for workers to remain in their jobs to keep their insurance coverage B. A job where a time clock is used C. A job that provides insurance coverage only after several years of employment D. all of these answer options are correct.
In the short run,
a. the labor market is always in equilibrium b. actual output can deviate from potential output c. crowding out is always complete d. total output is independent of spending e. spending is independent of total income
Suppose Ernie gives up his job as a financial advisor for pets, for which he earned $30,000 per year, to open up a store selling spot remover to Dalmatians. He invested $10,000 of his savings, which had been earning 5 percent interest. This year's revenues in the new business were $50,000 and explicit costs were $10,000 . Calculate Ernie's economic profit
a. $10,000 b. $50,000 c. $20,000 d. $40,000 e. $9,500
In a perfectly competitive market, when the price is greater than the minimum average total cost for most firms, some will:
A. exit until the price increases to equal minimum ATC. B. enter until the price increases to equal minimum ATC. C. exit until the price drops to equal minimum ATC. D. enter until the price drops to equal minimum ATC.