Joe's search costs are $5 per search. He wants to buy a video player for his wife for Christmas, and the lowest price he's found so far is $200. Joe thinks 50 percent of the stores charge $200 for video players and 50 percent charge $190. Based on this information:
A. Joe is indifferent between searching again and stopping.
B. Joe should stop searching and purchase the video player at $200.
C. Joe should search again.
D. There is insufficient information to make a determination.
Answer: A
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The above figure represents a restaurant operating in monopolistic competition
a. What is the profit-maximizing level of output? b. What price will the firm charge? c. What is the firm's profit (or loss)? d. Is this a long-run equilibrium? Why or why not? e. Is this firm producing its efficient scale of output?
Which of the following was an objective of the framers of the Federal Reserve System?
A) Decentralized power B) Executive branch power C) Elimination of private-sector influence D) Consolidation of the banking industry
Holding other factors constant, increasing the availability of disability benefits would likely
A) decrease cyclical unemployment and the natural rate of unemployment. B) increase structural unemployment and the natural rate of unemployment. C) increase frictional unemployment and the natural rate of unemployment. D) decrease the natural rate of unemployment.
Which of the following steps should you follow when using a formula?
A) Make sure the number you calculate using the formula is economically reasonable
B) Make sure you understand the economic concept the formula represents
C) Make sure you are using the correct formula for the problem you are solving
D) All of the above are steps you should follow when using a formula