Which of the following statements is true?
A. The four phases of the business cycle, in order, are: peak, recovery, trough, recession.
B. When unemployment is rising then real GDP is rising.
C. The economic problem typically associated with a recovery is rising unemployment.
D. Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.
Answer: D
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Two friends, Diane and Stan, own and run a bar. Diane tends bar on Monday, Wednesday, and Friday and receives a wage in addition to tips. Stan tends bar on Tuesday, Thursday, and Saturday and receives only tips. Which of the following represents an implicit cost of operating the bar?
a. Diane's wage b. Stan's time c. Diane's tips d. Stan's tips e. both Diane's and Stan's tips
What type of technology can reduce the amount of externality generated for a given rat eof output by altering the production process?
a. marginal technology b. variable technology c. fixed production technology d. cutting edge technology
Exhibit 9-1 A monopolistic competitive firm
?
As represented in Exhibit 9-1, the maximum long-run economic profit earned by this monopolistic competitive firm is:
A. zero. B. $200 per day. C. $1,000 per day. D. $20,000 per day.
What is the result when real planned saving is lower than real planned investment spending?
A. There is unplanned depletion of business inventories. B. Employment decreases. C. The economy is in equilibrium. D. There is unplanned accumulation of business inventories.