In a business cycle, the low point of economic activity is called
A. a peak
B. a low
C. a bottom
D. a trough
Answer: D. a trough
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Refer to Game Matrix II. Which outcomes in this game are Pareto optimal?
Game Matrix II
The following questions refer to the game matrix below. Player A can play the strategies "High" and "Low," and Player B can play the strategies "Odd" and "Even."
a. The upper right-hand corner only.
b. The lower right-hand corner only.
c. Both the upper and lower right-hand corners.
d. All outcomes except the upper left-hand corner.
An effective minimum wage tends to
A) increase the supply of unskilled labor. B) decrease the demand for unskilled labor. C) create a surplus of unskilled labor. D) accomplish all of the above. E) accomplish none of the above.
Price elasticity of demand
What will be an ideal response?
Which of the following would explain why accounting profit might be greater than economic profit?
A) A firm has implicit costs as well as explicit costs. B) A firm has only explicit costs. C) A firm's net income is greater than its accounting profit. D) A firm's net income is less than its accounting profit.