If, for a given output level, a perfectly competitive firm's price is less than its average variable cost, the firm
A) is earning a profit. B) should increase output.
C) should increase price. D) should shut down.
D
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Juanita quit her job to move to Santa Fe to be closer to her family. She is actively looking for a new job in Santa Fe. Juanita is considered
A) frictionally unemployed. B) structurally unemployed. C) not to be unemployed. D) cyclically unemployed.
Refer to Scenario 12.2. If each player plays an ideal mixed strategy, then both will donate a kidney about ________ of the time
A) 6.25% B) 12.5% C) 37.5% D) 50%
Suppose Ginger is going to buy a house and a dishwasher. Assuming the marginal cost of searching for both is the same, one can predict that Ginger will
A. spend more time searching for the dishwasher than the house. B. trust the information from her real estate agent but not from the dishwasher salesperson. C. spend more time searching for the house than the dishwasher. D. spend equal amounts of time searching for the dishwasher and the house.
Which of the following would help eliminate the trade deficit?
A. Reduced reservation wages B. Lower tariffs C. Expansionary fiscal policy D. A rise in the exchange rate