Business cycle peaks are always followed by the _____ phase.
Fill in the blank(s) with the appropriate word(s).
recession
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Suppose a multi-product monopolist sells two complementary goods, A and B. Annual market demand for good A is QdA = 600 - 25PA - 12PB. Each time a consumer buys A, his demand for B is QdB = 4 - 0.4PB. The marginal cost of good A is a constant $4, and the marginal cost of good B is a constant $0.50. Suppose the price of good B is $5. If the monopolist considers the effect of additional sales of A on the sales of good B, what will be its total profit from the sales of A and B?
A. $7,414.75 B. $5,752.25 C. $4,422.25 D. $1,429.75
Historical data representing consumption and disposable income reveals that
a. during the 1930s, U.S. saving was at a high level. b. U.S. citizens increased saving during World War II. c. there is no systematic relationship between the two. d. consumption rises faster than disposable income during recessions.
If a market is in equilibrium, then it is impossible for a social planner to raise economic welfare by increasing or decreasing the quantity of the good
a. True b. False Indicate whether the statement is true or false
Which statement is false?
A. Winner-take-all markets are spreading. B. The U.S. has the highest hourly wage and fringe benefits of all the industrial nations. C. Real hourly wages in the U.S. were lower in 1994 than they were in 1986. D. None of these statements are false.