During a recession, unemployment insurance ensures that:
a. the disposable income of those who are unemployed will increase above the usual level.
b. disposable income does not fall by as much as GDP decreases
c. disposable income increases as GDP falls.
d. the marginal propensity to consume increases.
e. the marginal propensity to consume decreases.
b
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Recent research suggested that there are large health benefits from consuming cooked tomatoes. Holding other things constant, this will cause
a. The demand curve for tomatoes to shift to the right b. The demand curve for tomatoes to shift to the left c. The supply curve for tomatoes to shift to the right d. The supply curve for tomatoes to shift to the left
An oligopolist cannot use the MR = MC rule to find its equilibrium output level because
a. oligopolists do not face stable demand curves for their output b. oligopolists do not try to maximize profits in the long run c. it is too difficult to estimate marginal cost d. the rule applies only in perfect competition e. the minimum efficient scale exceeds total quantity demanded