Refer to the figures. Which figure(s) represent(s) a situation where firms are likely to hold inventories to accommodate unexpected changes in demand?
A. A only.
B. B only.
C. Both A and B.
D. Neither A nor B.
B. B only.
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When marginal product is less than average product,
a. average product falls. b. average product is zero. c. average product increases. d. average product is unaffected.
If the cross elasticity of demand for two goods is positive, then the two goods are substitutes
Indicate whether the statement is true or false
Two economists created fake resumes with either common African-American names such as Lakisha and Jamal or common white names such as Emily and Greg. After sending them to potential employers with "Help Wanted" ads in Boston and Chicago newspapers, they found that
a. black employees earned 50 percent less than white employees in Chicago but that blacks and whites had similar wages in Boston. b. black employees earned 50 percent less than white employees in Boston but that blacks and whites had similar wages in Chicago. c. job applicants with white names received 50 percent more phone calls from interested employers. d. job applicants with white names received 7 percent more phone calls from interested employers.
Which of the following is always a characteristic of the contraction phase of the business cycle?
A) lower unemployment rates B) a decline in Real GDP C) higher inflation rates D) a decline in GDP E) all of the above