The aggregate supply curve indicates the:
A. relationship between prices and the aggregate quantity of goods and services purchased by consumers, investors, governments, and foreigners (net exports).
B. relationship between prices and the natural rate of unemployment.
C. relationship between the real wage rate and the quantity of labor supplied by households.
D. quantity of goods and services producers will supply at different price levels.
Answer: D
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A learning curve relates ________ to ________ and is a case of ________ returns
A) unit cost; cumulative production; dynamic increasing returns B) output per time period; long-run marginal cost; dynamic increasing returns C) unit cost; cumulative production; dynamic decreasing returns D) output per time period; long-run marginal cost; dynamic decreasing returns E) labor productivity; education; increasing marginal returns
If wages drop below the market equilibrium level in a competitive labor market:
A. firms will demand more labor than workers are willing to supply. B. firms will be able to offer lower wages and still fill all the jobs they have. C. unemployment will persist until the wage increases. D. All of these statements are true.
The corporate income tax is
a. a tax on corporate profit, not revenue. b. the single largest source of federal revenue. c. a payroll tax paid partially by employees and partially by employers. d. has increased as a proportion of federal tax revenue since 1950.
Other things equal, if wage rates increase by 20 percent, the greatest decline in employment will occur when labor costs are a:
A. large proportion of total costs and product demand is elastic. B. small proportion of total costs and product demand is elastic. C. large proportion of total costs and product demand is inelastic. D. small proportion of total costs and product demand is inelastic.