If a cut in prices decreases total revenue in the short run, what will it do to total revenue in the long run?
a. It will decrease total revenue in the long run
b. It will increase total revenue in the long run.
c. It will leave total revenue unchanged in the long run.
d. Any of the above results are possible in the long run.
d
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Johnson's Piggery is the only employer in town. Johnson employs 500 workers and pays them each a wage of $8 . The MRP of the 500th worker is $10 . Johnson's return to monopsony power is
a. 2 percent b. equal to the marginal labor cost c. $4,000 d. $9 e. $1,000
A production possibilities curve with clothing and food on the axes shows that
I. A society can not have an unlimited amount of each good II. For an efficient society, an increase in clothing production will necessitate a decrease in food production III. A society will always produce the maximum amount of both clothing and food A) I only B) II only C) III only D) Both I and II
Money is a factor of production because it is part of capital.
a. true b. false
Sarah is a full-time student who is not looking for work. What kind of unemployment is Sarah experiencing?
A) cyclical B) structural C) frictional D) Sarah is not experiencing unemployment of any kind, because she is not currently part of the labor force.