Suppose a firm finds it is better off operating than shutting down in the short run. What is true at the quantity at which marginal cost equals marginal revenue?
a. total cost equals total revenue
b. average cost equals average revenue
c. profit is maximized
d. revenue is maximized
e. cost is minimized
C
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If a 5 percent reduction in the price of a commodity results in a 3 percent increase in the quantity demanded, demand is said to be
a. perfectly elastic. b. elastic. c. unit elastic. d. inelastic. e. perfectly inelastic.
A headline states: "Real GDP falls again as the economy slumps." This condition is most likely to produce what type of unemployment?
A. natural B. frictional C. structural D. cyclical
What is the interest rate that should be used to ensure a total balance of $3,000 two years from now if you have a starting balance of $2,000?
What will be an ideal response?
If you are out of work and are not looking for a job, then:
a. you are classified as "unemployed." b. You are part of the unemployment rate, but you are not part of the workforce. c. You are part of the unemployment rate, because you are part of the workforce. d. You are not classified as "unemployed," because you are no longer a part of the workforce. e. None of the above.