If total explicit costs are equal to total implicit costs, then economic profit is zero
Indicate whether the statement is true or false
F
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In the economy of Grippe, 40 people have jobs, 10 people are not working but are searching for work, and 100 people don't work and don't seek work. The unemployment rate is
A) 14 percent. B) 15 percent C) 20 percent. D) 25 percent. E) none of the above.
The demand curve for labor slopes down because
A) firms value less efficient workers less than they value more efficient workers. B) firms must lower prices to sell the additional units of its product that the extra workers produce. C) of the law of diminishing marginal product. D) of profit maximizing behavior.
The Federal Reserve Bank attempted to deal with the sluggish aggregate demand that followed the housing market crash and subsequent financial crisis through:
A. contractionary monetary policy. B. expansionary fiscal policy. C. expansionary monetary policy. D. contractionary fiscal policy.
You are the sales manager for a software company and have been informed that the price elasticity of demand for your most popular software is less than 1. To increase total revenues, you should:
A. increase the price of the software. B. decrease the price of the software. C. increase the supply of the software. D. hold the price of the software constant.