If P represents the price of goods and services measured in money, then 1/P is the value of money measured in terms of goods and services
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is an example of a positive economic statement?
A) The unemployment rate last month was 5.4 percent. B) The unemployment rate last month was too high. C) Because of the high unemployment rate last month the government should increase government spending. D) The unemployment rate should be measured differently because it doesn't include students who can't find jobs.
A competitive firm sells its output for $60 per unit. Assume that labor is the only input that varies for the firm. The marginal product of the 10th worker is 20 units of output per day; the marginal product of the 11th worker is 16 units of output per day. The firm pays its workers a wage of $150 per day. For the 11th worker, the value of the marginal product of labor is
a. $480. b. $960. c. $1,200. d. $2,400.
If the Fed conducts open-market purchases, then which of the following quantities increase(s)?
a. interest rates and investment spending b. interest rates, but not investment spending c. investment spending, but not interest rates d. neither interest rates nor investment spending
Which of the following firms is most likely a price leader in an oligopolistic industry?
a. Firm A controls 15 percent of the market for automobiles. b. Firm B accounts for 10 percent of total wheat sales. c. Firm C controls 65 percent of the market for heavy machinery. d. Firm D accounts for 12 percent of the fast food market.