When price decreases, consumer surplus
a. increases
b. remains constant
c. decreases
d. becomes negative
e. may increase or decrease
A
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The labor supply curve facing an individual employer in a perfectly competitive labor market is:
a. upward sloping. b. downward sloping. c. horizontal. d. greater than MFC. e. the MRP curve.
When price is above the equilibrium level, competitive price cutting will continue as long as quantity supplied exceeds quantity demanded
a. True b. False Indicate whether the statement is true or false
Businesses do all of the following except:
A. demand goods and services from households in the goods market. B. pay taxes to the government. C. demand labor services from households in the factor market. D. supply goods and services to the government in the goods market.
In an open economy, a shift down and to the left of the IS curve could have been caused by
A. a decline in domestic output. B. a decline in the foreign real interest rate. C. an increase in foreign output. D. an increase in the demand for domestic goods relative to foreign goods.