During a recession
A) incomes rise and employment decreases.
B) incomes fall and unemployment increases.
C) incomes fall and unemployment falls.
D) incomes rise and unemployment increases.
Answer: B) incomes fall and unemployment increases.
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Regulation of a natural monopoly that forces it to price and produce as if it were a competitive firm results in
A) the market being instantly competitive. B) higher profits for the monopoly. C) economic losses for the monopoly. D) a highly unstable marketplace.
Unemployment compensation is available to:
A. people who are out of work through no fault of their own regardless of previous employment history. B. anyone who is unemployed for an unlimited duration. C. anyone who is unemployed but for a limited duration. D. people who are out of work through no fault of their own and have worked in a covered occupation for a substantial number of weeks in the period just before they became unemployed.
If the MPC is three quarters, then an increase in disposable income will cause
A. consumption to increase, while saving decreases. B. consumption to decrease, while saving increases. C. consumption and saving both to increase, with consumption increasing more than saving.
If perfectly competitive industry B is currently realizing economic profits, we would expect that:
a. industry output will fall, good B will fall in price, and economic profits will tend to disappear. b. industry output will fall, good B will rise in price, and economic profits will tend to disappear. c. industry output will rise, good B will fall in price, and economic profits will tend to disappear. d. industry output will rise, good B will fall in price, and economic profits will tend to increase.