Passive policy advocates rely on the economy's natural ability to correct itself in case of unemployment because of:
a. the lack of any real concern for those who have no jobs
b. the conviction that unemployment is relatively harmless.
c. the belief that active economic policy is likely to be either ineffective or harmful.
d. the desire to await further economic data before intervening.
e. the belief in the law of diminishing returns.
c
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The minimum point on the marginal cost curve corresponds to the:
a. maximum point on the total cost curve. b. minimum point on the total cost curve. c. inflection point on the total variable cost curve. d. midpoint of the total cost curve.
Sophia has a business using no owned capital and makes an accounting profit of $52,000 a year. Sophia could have worked for Verizon Wireless with a pay of $35,000 a year, but she would not have had time to run her business. The economic profit from Sophia's business per year is
a. $87,000. b. $35,000. c. $17,000. d. -$17,000.
From 2000 to 2001, the U.S. economy's annual growth rate slowed down abruptly.
Answer the following statement true (T) or false (F)
Refer to the figure above. If AD 1 shifts to AD 2, then the equilibrium output:
Increases from Q1 to Q3 while the price level falls from P2 to P1 Increases from Q1 to Q2 while the price level rises from P1 to P2 Increases from Q1 to Q3 while the price level rises from P1 to P2 Increases from Q1 to Q2 while the price level falls from P2 to P1