After a price floor of $23 is placed on the market in the graph shown, which area represents producer surplus?
A. B + C + D + F
B. B + E
C. B + C + D
D. B + C + E + F
B. B + E
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To produce more output in the short run, a firm must employ more of
A) all its resources. B) its fixed resources. C) its variable resources. D) the least costly resources regardless of whether they are fixed or variable. E) Firms cannot produce more output in the short run.
Which of the following is NOT a monetary policy tool of the Federal Reserve?
A) changes in required reserves B) last resort loans C) deposit insurance D) open market operations
If unplanned investment is positive, firms will ________ production and output will ________
A) cut; rise B) cut; fall C) increase; rise D) increase; fall
Which one of the following people is frictionally unemployed? A steel worker who
A) decides to leave the labour force and become a full-time ballet student. B) becomes discouraged and stops looking for a job. C) is laid off but expects to be called back soon. D) loses her job because of technological change. E) gives up her job because she retires.