During a recession, the unemployment rate
A) is, by definition, above 25 percent.
B) is, by definition, above 10 percent.
C) usually increases but not necessarily to 10 percent or 25 percent.
D) remains constant.
E) usually decreases.
C
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In the above figure, if the market price rises from $100 to $125 per ton of wheat, then producer surplus
A) decreases. B) does not change. C) increases. D) might increase, decrease, or not change depending on how the demand curve for wheat shifts.
Joe quits his job as an insurance agent and opens his own sporting goods store. If his profits as measured by his accountant are greater than zero, then
A) he made a good move because he is earning above normal profits. B) his economic profit must be greater than zero. C) his opportunity costs must be zero. D) There is not enough information to determine his economic profit, if any.