The marginal revenue curve faced by a perfectly competitive firm
A. is downward sloping, because price must be reduced to sell more output.
B. lies below the firm's demand curve.
C. is horizontal at the market price.
D. has all of these characteristics.
Answer: C
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The figure above shows the U.S. supply of labor curve. If there is a simultaneous increase in the nominal wage rate of 10 percent and a 10 percent increase in the price level, there will be a
A) rightward shift of the supply of labor curve. B) movement downward along the supply of labor curve from a point such as A to a point such as B. C) leftward shift of the supply of labor curve. D) movement upward along the supply of labor curve from a point such as C to a point such as B. E) None of the above answers is correct because there is no change in the supply of labor curve.
What is comparative advantage? Give an example
What will be an ideal response?
If MPC = 0.8 and the economy is in equilibrium $500 below full-employment equilibrium, how much should government spending change to achieve full employment?
a. ?100. b. +80. c. ?80. d. +500. e. +100.
If the Fed buys government securities from depository institutions, the effect will be to
A. reduce loans and reduce the money supply. B. reduce loans and increase the money supply. C. increase loans and reduce the money supply. D. increase loans and increase the money supply.