If the price level rises by 5 percent and workers' money wage rates remain constant, firms'
A) quantity of labor demanded will decrease.
B) quantity of labor demanded will increase.
C) supply of jobs will decrease.
D) None of the above answers are correct.
B
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Which of the following best describes Producer Surplus?
(a) The price suppliers are willing to sell a good for. (b) The profits made by a firm. (c) The difference between what a consumer is willing to pay for a good and what they actually pay. (d) The difference between what a producer is willing to sell a good for and what they actually sellthe good for.
If a perfectly competitive firm's price is less than its average total cost but greater than its average variable cost, the firm
A) is earning a profit. B) should shut down. C) is incurring a loss. D) is breaking even.
Induced taxes are defined as taxes
A) that vary with real GDP. B) enacted by Congress that explicitly state the amount to be paid. C) we are forced to pay for services from the government. D) that rise in recessions and fall in expansions. E) that are avoided with the use of legal tax shelters.
Which of the following are the three fundamental economic questions?
a. What to produce, when to produce, and where to produce b. What time to produce, what place to produce, and how to produce c. What to produce, when to produce, and for whom to produce d. What to produce, how to produce, and for whom to produce