What is a long-run average cost curve?
What will be an ideal response?
It is the lower envelope of the short-run average cost curves.
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Allocative efficienty exist when firms produce the output most preferred by consumers
a. True b. False
Karena was laid off, but she is expecting to be recalled. She has not looked for work since being laid off. Nathan is not employed, nor was he laid off. Who is counted as "unemployed" in the U.S. labor force statistics?
a. 1) Karena and 2) Nathan, even if Nathan has not looked for work during the previous four weeks b. 1) Karena and 2) Nathan, if Nathan has looked for work during the previous four weeks c. 1) not Karena but 2) Nathan, even if Nathan has not looked for work during the previous four weeks d. 1) not Karena but 2) Nathan, if Nathan has looked for work during the previous four weeks
José Conseco, then a major league baseball star who had just signed a very large contract, said, "I don't think it's what I'm worth. It's what the market holds, what the organizations are willing to pay a player." He was really talking about
A. the substitution effect. B. the income effect. C. the primary labor market. D. the secondary labor market. E. economic rent.
Suppose lower expectations lead to a decrease of $240 in desired investment in the economy and the marginal propensity to consume is 0.75.Table 10.2Spending CyclesChange in this Cycle's Spending and IncomeCumulative Decrease in Spending and IncomeFirst-cycle spending-$240-$240Second-cycle spending________________Third-cycle spending________________In Table 10.2, what is the cumulative decrease in expenditure by the end of the second cycle?
A. -$420.00. B. -$960.00. C. -$180.00. D. -$480.00.