Mr. Peabody chooses to invest in companies that produce goods and services based on consumer preferences. Mr. Peabody is investing in companies that are attempting to be
A) guaranteed to make a profit. B) allocatively efficient.
C) productively efficient. D) all of the above
B
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If in the short run the demand for mass transit is relatively inelastic and in the long run the demand is relatively elastic, then a price ________ will ________ total revenue in the short run but ________ total revenue in the long run.
A. decrease; decrease; decrease B. decrease; increase; decrease C. increase; decrease; increase D. increase; increase; decrease
Because there is a trade-off between total output and equality of income distribution,
a. greater equality of distribution will generally result in higher levels of output. b. greater output is generally associated with more equal distribution. c. policies designed to increase output will only succeed if distribution is more equal. d. policies intended to expand output must necessarily fail. e. policies designed to equalize distribution may adversely affect the size of output.
Which of the following students would be most likely to drop out of college before completing their degree?
a. a senior physics major with a solid B average b. a junior secondary education major who has just read about the substantial improvement in the job opportunities available for teachers with a college degree c. an outstanding baseball player in his junior year that just received a $500,000 offer from a professional team d. a junior economics major who wants to attend law school
According to Okun's law, when cyclical unemployment increases from 1 percent to 2 percent, the recessionary gap increases from ________.
A. ?2 percent to ?4 percent B. 2 percent to 4 percent C. ?1 percent to ?2 percent D. 1 percent to 2 percent