If the firm in Figure 7.3 produces at Q3, the firm
A. will receive less profits than if it produces at Q2.
B. maximizes profits.
C. minimizes costs.
D. will receive less profits than if it produces at Q4.
Answer: A
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In an open mixed economy, injections are saving, taxation, and import spending
Indicate whether the statement is true or false
A monopsonist hires labor in a market with perfectly competitive supply. Whenever she hires an additional worker,
A. she must reduce the wage paid to all workers already hired. B. she will not change the wage paid to all workers already hired. C. she must raise the wage paid to all workers already hired. D. she may or may not choose to change the wage paid to all workers already hired.
Property rights and a strong titling system are seen as important to economic development because they allow:
A. loans to be taken out against the equity of their assets, increasing investment. B. loans to be taken out without risk, increasing the quality, not quantity, of investment. C. savers to invest in property and capital. D. agencies with authority to verify titling to thrive in the economy.
When the unemployment rate ________ the natural unemployment rate, real GDP ________ potential GDP.
A) is greater than; is less than B) equals; is greater than C) is less than; is less than D) equal; is less than E) is greater than; equals