A decrease in aggregate demand and the subsequent cutbacks in production lead to:
a. frictional unemployment.
b. cyclical unemployment.
c. cost-push unemployment.
d. structural unemployment.
e. transitory unemployment.
b
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Suppose a perfectly competitive market is in a short-run equilibrium. If some firms exit the market, the profit of the remaining firms ________; if some firms enter the market, the profit of each existing firm ________
A) decreases; is unchanged B) increases; decreases C) increases; is unchanged D) is unchanged; is unchanged E) decreases; increases
Research and development is most likely to have an impact on the _____
a. quantity of labor available b. quantity of capital goods available c. quality of labor available d. quality of capital goods available e. use of energy
Competitive firms decide how much output to sell by producing output until the price of the good equals
a. marginal product. b. the value of marginal product. c. marginal cost. d. marginal profit.
What is an individual's marginal rate of substitution between nickels and dollar bills? Assume the individual only cares about the monetary value of each bundle
a. 5 b. 10 c. 20 d. 100