Suppose that during a given month 500,000 persons quit their job to become self-employed. This will cause
A) the unemployment rate to fall.
B) the unemployment rate to rise.
C) payroll employment to rise.
D) payroll employment to fall.
E) no change in either the unemployment rate or payroll employment.
D
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A rightward shift of the demand curve will lead to a(n)
A) increase in equilibrium price. B) excess demand at the old equilibrium price. C) increase in quantity supplied. D) All of the above.
In the late 1990s, the more than expected increases in tax revenues were the result of
A. rapid economic growth. B. rapid increases in the national debt. C. rising rates of inflation, and therefore, nominal incomes. D. rising balance of trade surpluses and the import duties they generated.
Firms can earn economic profits even in the long run if
a. they charge the highest price possible b. there is a cost-reducing technological change c. there are significant barriers to entry d. marginal revenue equals marginal cost e. price is less than average variable cost at all rates of output
When examining the financial status of households, wealth is
A) synonymous with income. B) a flow variable whereas income is a stock variable. C) a stock variable and includes both tangible assets and human capital. D) not as important as income because wealth does not change over time.