During a recession, unemployment
a. increases
b. decreases.
c. is equal to the natural rate of unemployment.
d. is frictional unemployment minus structural unemployment.
Answer: a. increases
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Variable costs are:
A. costs that don't depend on the quantity of output produced. B. costs that depend on the quantity of output produced. C. one-time costs. D. None of these is true.
Fred Monroe is a fisherman in the perfectly competitive fish industry in northern Minnesota. After years of experience, he knows that the demand curve for the fish he sells is
a. horizontal b. vertical c. downward sloping d. the same as the industry demand e. upward sloping
A recessionary gap exists if (actual) Real GDP is __________ Natural Real GDP
A) less than B) greater than C) equal to D) b and c E) none of the above
If Jen takes out a $2,000 loan for one year at 10 percent interest annually, the price she will pay for borrowing is:
A. $200. B. $2,000. C. $2,400. D. $2,200.