Consider the labor market depicted in the above figure. The competitive equilibrium would be for workers to be paid an hourly wage equal to
A) $10.
B) $15.
C) $20.
D) None of the above answers is correct.
B
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Suppose the shift from AD0 to AD1 and from AS0 to AS1 is the result of fiscal policy. Which of the policies below could lead to these shifts?
i. An increase in government expenditure ii. A tax cut iii. A decrease in government expenditure iv. A tax hike A) iv only B) i and ii C) i and iv D) i only E) iii and iv
A decrease in U.S. prices relative to European prices
A) will decrease European exports to the United States. B) will increase U.S. imports from Europe. C) will decrease U.S. exports to Europe. D) will not affect U.S. trade with Europe.
A stock is:
A. a financial asset that represents partial ownership of a company. B. a payment made periodically to all shareholders of a company. C. an agreement in which a lender gives money to a borrower in exchange for a promise to repay the amount loaned plus an agreed-upon amount of interest. D. a promise by the bond issuer to repay the loan, at a specified maturity date, and to pay periodic interest at a specific percentage rate.
The average total cost curve of a firm is U shaped.
Answer the following statement true (T) or false (F)