Unemployment insurance:
A. will not affect the natural rate of unemployment.
B. is an explanation for why wages do not reach equilibrium.
C. can affect how quickly people find jobs.
D. is a mandated federal policy all states must adhere to.
Answer: C
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A firm which owns its own equipment and is earning positive economic profits a. is likely earning positive accounting profits
b. is likely earning zero accounting profits. c. is likely earning negative accounting profits. d. could be earning positive or negative accounting profits.
If there is shortage of loanable funds, then
a. the supply for loanable funds shifts right and the demand shifts left. b. the supply for loanable funds shifts left and the demand shifts right. c. neither curve shifts, but the quantity of loanable funds supplied increases and the quantity demanded decreases as the interest rate rises to equilibrium. d. neither curve shifts, but the quantity of loanable funds supplied decreases and the quantity demanded increases as the interest rate falls to equilibrium.