The main reason why the economy's aggregate supply curve slopes upward is that
a. as the price level rises, businesses incur additional costs.
b. businesses typically purchase labor and other inputs under long-term contracts that fix the cost of the input in money terms.
c. as the price level rises, workers have higher real wages to spend for additional consumer goods.
d. All of the above are correct.
b
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Suppose the government considers placing a tax on business profits o that businesses decrease their production and generate a deadweight loss. Revenues from the tax would be used to boost the incomes of the poor
The decision to levy the tax implies that in this case, the government A) values people but not business. B) values efficiency more than its view of fairness. C) profits from taxes. D) values its view of fairness more than efficiency.
Answer the following statements true (T) or false (F)
1. In imperfect product competition, the output price is fixed to the firm. 2. The demand curve for labor is more inelastic under competitive conditions than under imperfect competition. 3. The backward-bending portion of the labor supply curve shows the income effect dominating the substitution effect. 4. Unions cause a lowering of wages in the unionized labor market. 5. Unions cause the wages to be lower in the non unionized labor market. 6. Increased licensing requirements reduce the supply of labor. 7. Unemployment rates in Japan are the highest compared to other developed countries.
Pure economic profit must be at a maximum for a monopolist who has a level of output in which total revenue is at a maximum
a. True b. False Indicate whether the statement is true or false
When making historical comparison's of one's income, is it better to use real income or nominal income for the basis of your comparison? Explain why one makes a better comparison than the other