Which of the following would constitute an act of investment by a household, as economists use the term?
A. purchasing 100 shares of Microsoft stock
B. building a new construction vacation home
C. borrowing money from the bank to pay for a vacation cruise
D. buying a corporate bond
Answer: B
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During a recession, the unemployment rate ________ and the percentage of part-time workers who are involuntary part-time workers ________
A) rises; rises B) rises; falls C) falls; rises D) falls; falls E) rises; does not change
In the long run in a perfectly competitive market, economic profit or loss is
a. the main determinant of total cost b. the main driving force determining consumer preferences c. the basis of all government policy d. the main driving force behind economic change e. expected to persist indefinitely
Which combination of fiscal policy actions would most stimulate an economy in a deep recession?
A. Increase in taxes and decrease in government spending B. Decrease in taxes and increase in government spending C. Increase in taxes and government spending D. Decrease in taxes and government spending
If a monopolist can perfectly price discriminate, then
A) price equals average cost for each unit sold. B) price equals marginal cost for each unit sold. C) price equals marginal cost for the last unit sold. D) the firm can ignore the marginal cost curve.