In which of the following instances is the effect on equilibrium price (whether it rises, falls, or remains unchanged) dependent on the magnitude of the shifts in supply and demand?
What will be an ideal response?
demand rises and supply rises
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If the wage is below the marginal revenue product, then a profit-maximizing firm will
a. employ more workers b. employ fewer workers c. see an increase in its demand for labor d. see an increase in its supply of labor e. see a fall in its demand for labor
The infant industry argument can be justified because
A. Government may choose to protect industries, which places heavy import burdens on the economy. B. The government may not be able politically to end protectionism even when protectionism is no longer justified. C. A new industry may never develop in a protected, noncompetitive environment. D. A new industry may be difficult to start in the face of existing foreign competition.
The concept of ____________________is based on voluntary decisions made by producers.
Fill in the blank(s) with the appropriate word(s).
Actions by the Federal Reserve to influence the level of GDP are known as:
A. monetary policy. B. fiscal policy. C. cyclical policy. D. procyclical policy.