If fixed cost rises,
A. the profit-maximizing level of output would decrease.
B. the profit-maximizing level of output would not change.
C. marginal cost rises.
D. variable cost falls.
Answer: B
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Answer the following statements true (T) or false (F)
1. Although the number of jobs requiring computer knowledge has increased, these jobs are found primarily in low-wage industries. 2. Union membership in the United States has fallen to less than 15 percent of the workforce. 3. Household wealth is defined as income minus liabilities. 4. Because their earnings are highest, married couples between the ages of 35–54 hold the largest share of wealth in the United States. 5. Non family households earn less than 50 percent of the income earned by family households.
Why does even a free market economy need some government intervention?
a. to provide for things that the marketplace does not address b. to ensure that the government has the freedom to tax as necessary c. to make sure that the government can fulfill its needs for military personnel d. so that the government has some control over factor resources
A value of zero for the elasticity of supply of some product implies that
A) the supply curve is horizontal. B) supply is highly responsive to price. C) the product will not be supplied at any price. D) there is no supply. E) the supply curve is vertical.
Which of the following statements is true?
A. The Phillips curve has always been stable. B. If the Phillips curve shifts outward to the right this illustrates a greater tradeoff between unemployment and inflation. C. Keynesian economics assumes a vertical Phillips curve. D. According to the natural rate hypothesis the Phillips curve is downward sloping.