All else equal, what is likely to happen to the unemployment rate during a recession?
a. It increases as real GDP increases.
b. It decreases as real GDP remains the same.
c. It increases as real GDP decreases.
d. It decreases as cyclical unemployment decreases.
e. It decreases as real GDP decreases.
C
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Under a fixed exchange rate regime, if a country has an undervalued exchange rate, then its central bank's attempt to keep its currency from ________ will result in a ________ of international reserves
A) depreciating; gain B) depreciating; loss C) appreciating; gain D) appreciating; loss
A small business owner earns $50,000 in revenue annually. The explicit annual costs equal $30,000. The owner could work for someone else and earn $25,000 annually. The owner's business profit is ________ and the economic profit is ________
A) $20,000, $20,000 B) $20,000, -$5,000 C) $25,000, -$5,000 D) $25,000, $20,000
Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
Which of the following statements is true?
A. Jordan's dominant strategy depends on Lee's choice. B. For Jordan, seeing a comedy is a dominant strategy. C. For Jordan, seeing a documentary is a dominant strategy. D. Jordan does not have a dominant strategy.
Mutual interdependence means that:
A. A firm's behavior is affected by other firms' actions B. A firm's profits are affected by other firms' entry or exit C. A firm's costs are affected by other firms' costs D. A firm's revenues are affected by other firms' demand for its product