The pursuit of profit will encourage firms to
a. produce efficiently and keep their costs low.
b. produce goods and services that consumers value highly relative to costs.
c. discover and develop better products and lower-cost production methods.
d. All of the above are correct.
d. All of the above are correct.
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If long-run economic growth is not accompanied by a change in aggregate demand, the result will be
A) persistent inflation. B) secular deflation. C) devaluation of the dollar. D) appreciation of the dollar.
Which statement is false?
A. American chief executive officers (CEOs) earn on average more than 400 times the salary of the average production worker. B. The effects of globalization has depressed American wage. C. Hourly wages and fringe benefits in the U.S. are the lowest of any industrial country. D. None of the statements are false.
In 1992, the bilateral agreement of the United States with the European Union regarding the subsidies for production of civil aircraft included that
A. subsidies could only be in the form of loans at a market rate of interest with a short repayment period. B. marketing subsidies could be provided to the firm, but production subsidies could not. C. indirect government support is limited to 4 percent of a firm's civil aircraft sales. D. direct government support for new airplane development is limited to one-tenth of the total development costs.
The workers' perceived real wage rate is:
a. their nominal wage rate divided by the actual price level. b. their nominal wage rate divided by the expected price level. c. the actual price level divided by their nominal wage rate. d. the expected price level divided by their nominal wage rate.