The city of Hope has a labor force of 1000. Twenty people lose their jobs each month and remain unemployed for exactly one month before finding jobs. On January 1, May 1, and September 1 of each year, 50 people lose their jobs for a period of four months before finding new jobs. What is the unemployment rate in any given month?
A. 2%
B. 7%
C. 3%
D. 5%
Answer: B
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Explain whether each of the following is a fixed cost or a variable cost for Damian Dandridge's tattoo parlor
a. The payment he makes to buy tattoo ink. b. The wages he pays his employees. c. The $500-per-month payment he makes to advertise his shop on highway billboards. d. The lease payment he makes to the landlord who owns the building where his shop is located. e. The payment he makes on his liability insurance policy.
The authors note that the goal of maximizing the market value of the firm may be more appropriate than maximizing short-run profits because:
A) the market value of the firm is based on long-run profits. B) managers will not focus on increasing short-run profits at the expense of long-run profits. C) this would more closely align the interests of owners and managers. D) all of the above
With a negative income tax featuring an $8,000 minimum level of income and a 20% tax rate, a household earning zero dollars would receive a subsidy of:
a. zero b. $1,600 c. $6,400 d. $8,000
According to Table 0201A, the opportunity cost of each additional computer in terms of televisions A) remains constant. B) falls as more computers are produced. C ) increases as more computers are produced. D) is meaningless because the cost of computers cannot be expressed in terms of televisions.