When the economy enters a recession, your employer is unlikely to reduce your wages because ________ during a recession
A) output and input prices generally fall
B) output prices always fall
C) output prices generally fall and input prices generally rise
D) lower wages increase your incentive to find employment elsewhere.
D
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Congress and the President passed a national health care policy. This is an example of
A) increasing the marginal cost of health care. B) the government using economic tools to make policy decisions. C) increasing the marginal benefit of health care. D) normative versus positive economics. E) answering the "how" question.
Economists
A) describe reducing tariffs and quotas as shallow integration. B) describe reducing tariffs and quotas as deep integration. C) believe that changing domestic policies affecting trade is a relatively simple process. D) believe that the work of reducing trade barriers is done since most tariffs are low and most quotas eliminated. E) believe the original motivation for nations forming domestic policies and regulations was to create trade barriers to foreign companies.
In the long run, a perfectly competitive firm will produce:
a. in the upward-sloping portion of its LRAC curve. b. where P = minimum AVC. c. in the downward-sloping portion of its LRAC curve. d. where P is greater than minimum ATC. e. where P = minimum ATC.
For an economist, the idea of making assumptions is regarded generally as a
a. bad idea, since doing so leads to the omission of important ideas and variables from economic models. b. bad idea, since doing so invariably leads to data-collection problems. c. good idea, since doing so helps to simplify the complex world and make it easier to understand. d. good idea, since economic analysis without assumptions leads to complicated results that the general public finds hard to understand.