Firms base decisions on the decisions of other firms in the market in:
A. a monopolistically competitive industry.
B. a perfectly competitive industry.
C. a monopolistic industry.
D. an oligopolistic industry.
Answer: D
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Beth has just quit her job, moved to a new city, and is looking for a new job. Beth is
A) frictionally unemployed. B) structurally unemployed. C) distance unemployed. D) cyclically unemployed. E) locationally unemployed.
You're called in as a consultant: Price is $24 . At a production level of 200 units, MC = MR, AFC = $6, and AVC = $16 . What do you advise this firm to do?
a. Increase output. b. Decrease output. c. Shut down operations. d. Stay at 200 units; the firm is earning $400 profit. e. Stay at 200 units; the firm is minimizing losses of $200.
The efficient market hypothesis suggests that:
A. asset price bubbles are efficient. B. irrationality must a part of every economic model. C. while individuals can be irrational, collectively they will not. D. because individuals are rational, collectively they are also rational.
The BLS has chosen 90 to represent the average 1982-1984 price level, and it now measures all other years relative to this base year.
Answer the following statement true (T) or false (F)