A depression is:
A. the high point of economic activity prior to a downturn.
B. a particularly severe and protracted recession.
C. the low point of economic activity prior to a recovery.
D. a particularly strong and protracted expansion.
Answer: B
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Deadweight loss refers to the loss in ________
A) producer surplus due to a fall in the market price B) consumer surplus due to an increase in the market price C) total surplus due to a market distortion such as an externality D) total surplus due to a change in consumers' preferences
Which of the following describes the impact of unions on wages?
a. The high wages negotiated by the union drive up wages in the nonunion sector by extension. b. Collective bargaining has the effect of lowering wages in general to keep more people employed. c. By restricting membership, the union drives up union wages and drives down nonunion wages. d. The union has the collective power to enforce equilibrium wages for everyone.
To maximize profits, a perfectly competitive firm should do all the following except:
A. produce until marginal cost equals price. B. produce until per-unit profits are maximized. C. produce until marginal revenue equals marginal cost. D. produce until economic profits are maximized.
Members of the Euorpean Union
A. have less autonomy in conducting their monetary and fiscal policies than they did before the euro was introduced. B. have more autonomy in conducting their monetary and fiscal policies than they did before the euro was introduced. C. have less autonomy in conducting their monetary policy than they did before the euro was introduced, but more autonomy in conducting their fiscal policy. D. have more autonomy in conducting their monetary policy than they did before the euro was introduced, but less autonomy in conducting their fiscal policy.