Perfectly competitive firms are said to be "small." Which of the following best describes this smallness?
A) The individual firm must have fewer than 10 employees.
B) The individual firm faces a downward-sloping demand curve.
C) The individual firm has assets of less than $2 million.
D) The individual firm is unable to affect market price through its output decisions.
D
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If nominal GDP is $12 trillion, the price level is 120, and the quantity of money is $4 trillion, what is the velocity of circulation?
A) 3 B) 2.5 C) 30 D) 25
Suppose Motorland's government imposes a tax of $1.50 per gallon of gasoline sold. With the tax, when the market is in equilibrium, the deadweight loss is
A) zero. B) $37,500 per month. C) $150,000 per month. D) $75,000 per month.
An increase in the supply of labor has the effect of decreasing the
a. wage. b. marginal product of labor. c. value of the marginal product of labor. d. All of the above are correct.
MPL multiplied by PX is the ________, where L denotes labor and X denotes output.
A. marginal cost of a unit of output B. marginal revenue of a unit of output C. cost of a marginal unit of labor D. value of labor's marginal product