Markets help to promote growth by:
A. encouraging self-sufficiency.
B. undermining a nation's comparative advantage.
C. reducing specialization and the division of labor.
D. increasing specialization and the division of labor.
Answer: D
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If the nominal interest rate falls, everything else remaining unchanged, ________
A) the real interest rate will rise B) the inflation rate will decrease C) the real interest rate will remain unchanged D) the real interest rate will fall
If a firm does not produce any output, its
A) total fixed cost must be zero. B) economic profit must be positive. C) total variable cost must be zero. D) total costs must be zero. E) marginal cost must be zero.
Refer to the scenario above. The market for Good A in Eduland is an example of a ________
A) monopoly B) duopoly C) monopolistic competition D) perfect competition
Refer to Table 17-5. Oil Can Harry's, a new automobile service shop, is ready to start hiring. The table above shows the relationship between the number of mechanics the firm hires and the quantity of oil changes it produces
a. Suppose the price of an oil change is $20. Complete the table by filling in the values for marginal product and marginal revenue product. b. Oil Can Harry's is an input price-taker. Suppose the wage paid to mechanics is $80 per day. What is the profit-maximizing number of mechanics? c. Suppose the wage rate rises to $100 per day. (i) What happens to the firm's demand curve for mechanics? (ii) What happens to the profit-maximizing quantity of mechanics? d. Suppose the wage rate is $60 per day and the price of an oil change is now $15. (i) What happens to the firm's demand curve for mechanics? (ii) What happens to the profit-maximizing quantity of mechanics?