The phase of the business cycle in which real GDP declines is called:
A. the peak.
B. an expansion.
C. a recession.
D. the trough.
C. a recession.
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Pension plans in which employee benefits are set by the plan and the employer contributions are adjusted to meet those benefits is called a
A) defined benefit plan. B) defined contribution plan. C) a fully vested plan. D) an unfunded plan.
Price decreases always increase economic efficiency.
Answer the following statement true (T) or false (F)
Suppose that a professional photographer takes a prize-winning digital photo. She can sell a 5"x7" color print of the photo for $10 . She can also sell the digital file for $20 . There are 500 people willing to buy the color print and 2,000 people willing to buy the digital file. Assume the costs to the photographer are zero and that the people who purchase the digital file cannot resell the file
itself or any prints made from it. What should she do in order to maximize her profits? a. earn $5,000 by selling only the color prints b. earn $40,000 by selling only the digital files c. earn $45,000 by selling both the color prints and the digital files at their respective prices d. We do not have enough information with which to answer this question.
Refer to Table 3.2, which shows some costs and benefits of having your car repaired. What is the marginal cost of the 5th hour spent on repairs?
A. $360
B. $435
C. $510
D. $780