For a perfectly competitive firm, as its output increases its marginal revenue ________ and its marginal cost ________
A) changes; changes
B) changes; does not change
C) does not change; changes
D) does not change; does not change
C
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The theory of investment that emphasizes the roles of real interest rates and taxes is known as the
A) multiplier model. B) accelerator model. C) Q-theory of investment. D) neoclassical theory of investment.
Government intervention becomes necessary when self-interest leads to
a. increased profits. b. laissez-faire. c. the undermining of competition. d. the law of diminishing returns.
A reentrant is an individual
A) in the labor force whose employment was involuntarily terminated. B) who used to work full time but left the labor force and has now reentered it looking for a job. C) in the labor force who quits voluntarily. D) who has never held a full-time job lasting two weeks or longer but is now seeking employment.
If nominal income increases by 4 percent and the price level increases by 3 percent, real income must:
A. decrease by 1 percent. B. decrease by 7 percent. C. increase by 1 percent. D. increase by 7 percent.