If a firm is a price taker, its marginal revenue is
a. equal to market price.
b. less than market price.
c. greater than market price.
d. a multiple of market price that may be either greater than or less than one.
a
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Which of the following equations represents the equation of exchange?
A) PM = VY B) MY = PV C) MV = PY D) M = VP/Y
Suppose there are four industries. Labor costs are 20 percent of total costs in A, 40 percent in B, 60 percent in C, and 80 percent in D
A ten percent increase in the price of labor will cause industry ________ to reduce quantity demanded of labor by the largest proportion. A) A B) B C) C D) D
Which of the following is most likely to be a normal good?
a. trips to the laundromat b. macaroni-and-cheese dinners c. tickets to major league baseball games d. bus rides e. used paperback books
An increase in the interest rate will increase consumption spending
a. True b. False Indicate whether the statement is true or false