In? long-run equilibrium, the perfectly competitive firm will
A) go out of business.
B) produce to the point at which marginal cost is at its minimum.
C) produce to the point at which marginal cost equals average total cost.
D) produce on the upward sloping portion of its ATC curve.
Answer: C) produce to the point at which marginal cost equals average total cost.
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In the decade leading up to the financial crisis of 2008, U.S. housing prices:
A. were falling sharply. B. were rising rapidly. C. increased slowly. D. did not change.
The demand for a luxury good whose purchase would exhaust a big portion of one's income is
A. relatively elastic. B. relatively inelastic. C. perfectly elastic. D. unit-elastic.
When one observes consumption and investment patterns over time, one finds that:
a. like consumption, investment is fairly stable over time. b. like consumption, investment is fairly erratic over time. c. unlike consumption, which is fairly stable over time, investment is subject to erratic fluctuations. d. unlike consumption, which is subject to erratic fluctuations, investment is fairly stable over time. e. investment is rarely affected by technological and economic factors.
Suppose the population of the U.S. is 300 million people. Of these, the U.S. Bureau of Labor Statistics classifies 70 million people as "not surveyed," 80 million people as not in the labor force, and 144 million as employed. What would be the unemployment rate in this example?
Select one: a. 2% b. 4% c. 6% d. 8%