Suppose the supply of labor schedule decreases in a perfectly competitive labor market while the market demand schedule remains unchanged. A profit-maximizing representative firm will
A. substitute capital for labor.
B. hire the same number of workers.
C. hire more workers.
D. hire less workers.
Answer: D
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Who is associated with the following summary of the economic way of thinking: "The theory of economics does not furnish a body of settled conclusions immediately acceptable to policy
It is a method rather than a doctrine, an apparatus of the mind, a technique of thinking which helps its processer draw correct conclusions." A) Adam Smith B) John Maynard Keynes C) President Harry Truman D) Alfred Marshall
In long-run equilibrium, a perfectly competitive firm will produce an output level at which its long-run average cost curve is upward sloping
a. True b. False Indicate whether the statement is true or false
The reason the production possibilities curve is bowed outward (concave) is
A) the law of increasing additional cost. B) that technology is constantly changing. C) that the number of resources is increasing. D) that the economy has more capital goods than entrepreneurial effort.
How nations benefit from trade?