The term "business cycle" refers to ________
A) the opening and eventual closing down of businesses
B) the rising and later declining of the purchasing power of the dollar
C) the acquiring of raw materials and ultimate selling of a finished product
D) the tendency for rich economies to be inevitably out-paced by other economies
E) the slowing and eventual accelerating of economic growth
E
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If all of a monopolist's costs are fixed costs, it will produce where demand is unit elastic
a. True b. False
Which of the following factors leads to differences in income across individuals?
a. the level of skills possessed by an individual b. the quality of human capital and education c. preferences for work over leisure d. all of the above
Suppose a product produces substantial spillover costs. If the government adopts a policy that forces producers to bear those costs: a. the equilibrium quantity of the product exchanged will fall. b. the initial misallocation of resources will be corrected
c. the equilibrium price of the product will rise. d. all of the above will be true.
In surveying their alumni, State U's economics department discovered that ramen noodle consumption declined once students graduated and found jobs. One conclusion the survey team might draw from this result is that:
A. ramen noodles are an inferior good. B. college graduates have a high reservation price for ramen noodles. C. there is excess demand for ramen noodles. D. the equilibrium price for ramen noodles is too high.