The return that an entrepreneur can expect to earn, on average, is called
A) profit.
B) normal profit.
C) economic profit.
D) accounting profit.
B
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When economists speak of changes in GDP measured in constant dollars, they mean that:
a. money GDP is constant. b. the price level is constant. c. a price index has been used to adjust money GDP for the effects of inflation. d. the growth rate of money GDP has been adjusted for changes in population.
Giving people income through unemployment insurance:
A. allows people to prolong their unemployment until they find a better match. B. reduces seasonal employment because people find good matches, and change jobs less often. C. creates one effect positive on unemployment. D. All of these are true.
Banks act as:
A. an organizer among firms in a specific market. B. a negotiator for buyers. C. intermediaries between borrowers and savers. D. informants to various buyers about prices and contracts.
Which of the following would increase the unemployment rate?
A) a law making it illegal to work more than 35 hours per week B) a cut in unemployment compensation C) an increase in unemployment insurance payments D) a decrease in the minimum wage