Which of the following statements would a Classical economist of the 1930s most likely disagree with?
A. In the short-run the economy might experience some problems.
B. Unions do not impede wage and price adjustment.
C. The market, left to its own devices, is self-adjusting.
D. Wages and prices will adjust to eliminate unemployment.
Answer: B
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A monopolist maximizes profits by producing where which of the following occur?
a. MC = P b. AC = P c. MC = MR d. AC = AR
A peak in the business cycle:
A. is a temporary maximum point. B. occurs when the inflation rate is its lowest. C. occurs when the unemployment rate is its greatest. D. is a temporary minimum point.
If the demand for computer scientists increases relative to their supply,
a. the wages of computer scientists will decline. b. a computer science major will be more attractive to college students. c. the employment of computer scientists will fall. d. there will be a surplus of computer scientists.
An increase in the likelihood of a dismissal:
A. raises productivity at an increasing rate. B. decreases productivity at an increasing rate. C. raises productivity at a decreasing rate. D. decreases productivity at a decreasing rate.