Answer the following statements true (T) or false (F)
1. The prices of resources are an important factor in the determination of money income.
2. The demand for a resource is a derived demand based on the demand for the product it helps to produce.
3.The demand for a resource is a derived demand based on the demand for the product it helps to produce.
4 A firm's demand schedule for a resource is the firm's marginal product schedule for the resource.
5. A competitive firm's marginal revenue product of labor will fall as it employs more labor because of the decrease in the price of labor as more of it is employed.
1. TRUE
2. TRUE
3. FALSE
4.FALSE
5. FALSE
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The above figure shows the supply curves in four different markets. If each of the markets has an identical downward sloping demand curve and the same tax is levied on suppliers, which market would produce the smallest amount of deadweight loss?
A) A B) B C) C D) D E) A and D
If for some reason Americans desired to decrease their purchases of foreign assets, then other things the same
a. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency exchange would fall. b. both the real exchange rate and the quantity of dollars exchanged in the market for foreign-currency would rise. c. the real exchange rate would rise and the quantity of dollars exchanged in the market for foreign-currency would fall. d. the real exchange rate would fall and the quantity of dollars exchanged in the market for foreign-currency would rise.
In an economy experiencing hyperinflation, we expect to observe
A) an increase in the demand for money and an increase in velocity. B) an increase in the demand for money and a reduction in velocity. C) a decrease in the demand for money and an increase in velocity. D) a decrease in the demand for money and a reduction in velocity.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, the optimal point for the economy is
A. A. B. B. C. F. D. indeterminate from the information given.