A change in the equilibrium real interest rate may result from ________
A) an autonomous monetary policy
B) a change in the central bank's target inflation rate
C) a change in expected inflation
D) all of the above
E) none of the above
E
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Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4, what is the value of marginal product of the 4th worker?
A) $240 B) $70 C) $10 D) $40
If a firm has market power it may be able
A) to protect market share. B) to continue to earn economic profits. C) minimize marginal costs. D) to maximize total revenue.
Describe the role of government policies in determining the natural rate of unemployment in a country
Which of the following explains why theater prices for popcorn are three or four times higher than the popcorn price in the grocery store?
A. Grocery stores are satisfied with normal profit while theaters seek economic profit. B. The grocery store sells a much higher volume and gets its profits that way. C. The cost of popping the popcorn is high. D. The demand curve for popcorn in a theater is more inelastic than the demand for popcorn at the grocery store.