As GDP decreases during recessions, unemployment generally increases. Unemployment is therefore said to be procyclical
Indicate whether the statement is true or false
FALSE
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In perfect competition as well as in monopolistic competition,
a. marginal revenue is equal to price for each firm. b. profit is positive in a long-run equilibrium for each firm. c. entry and exit by firms are restricted. d. there are many firms in a single market.
Rapid economic growth:
A. has happened in various places around the world since the 1300s. B. has occurred since 1500, but backsliding has prevented real growth. C. is a modern phenomenon, happening only this year. D. is a modern phenomenon, happening only in the last century or two.
If Max's marginal rate of substitution for goods A and B is 3, then
A. the price of good A exceeds the price of good B. B. the marginal utility of good A is 3 and the marginal utility of good B is 3. C. the ratio of the total utilities of good A and good B is 3. D. Max is willing to give up 3 units of good A for 1 unit of good B.
When average variable cost is falling ______.
a. the average total cost curve must be moving upward b. the point of diminishing marginal product has set in c. marginal cost must be less than the average variable cost d. the average fixed cost curve crosses it at its lowest point