Suppose the natural rate of unemployment is 5 percent. If the actual unemployment rate is 4 percent, then the cyclical unemployment rate is
A) -1 percent.
B) 1 percent.
C) 9 percent.
D) 0 percent as cyclical unemployment cannot be less than zero.
A
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Which of the following is the best example of a pair of complements?
a. ?Milk and coffee b. ?Coffee and tea c. ?CDs and DVDs d. ?Hiking boots and athletic shoes e. ?Paperback books and hard cover books
Which form of price regulation increases consumer well-being and allows the firm to stay in business?
A. Allow the firm to set its own rate of return. B. Set prices equal to marginal cost. C. Set prices equal to average cost. D. Set lower prices when efficiency improves.
Assuming the firm in the graph is producing Q1 and charging P3, it is likely showing the cost and revenue curves of a firm in:
These are the cost and revenue curves associated with a firm.
A. the long run, and economic profits are zero.
B. the short run, and accounting profits are negative.
C. the long run, and accounting profits are zero.
D. the short run, and economic profits are positive.
An increase in supply is shown graphically as a ________ shift of the supply curve, and as a result of an increase in supply, equilibrium price will ________.
A. leftward; decrease B. rightward; increase C. leftward; increase D. rightward; decrease