The First Fundamental Theorem of Welfare Economics requires
A. producers and consumers to be price takers.
B. that there be a market for every commodity.
C. that the economy operate at some point on the utility possibility curve.
D. all of these answer options are correct.
D. all of these answer options are correct.
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A supply schedule is a table that reports:
A) the expected excess supply in the market at different prices. B) the profits earned by producers at different levels of production. C) the different quantities of a good that producers are willing to sell at different prices. D) the different quantities of a good that producers are willing to sell at different income levels.
The slope of the LM curve has been shown to depend most crucially on the interest elasticity of
a. consumption. b. saving. c. money demand. d. investment.
A competitive firm produces notebooks which sell in the market at $2 each. The firm hires 40 workers. If the market price of the notebooks increases to $3.5 each, which of the following statements is true?
a. The firm's labor demand curve will become flatter. b. The firm's labor demand curve will shift outward parallel to itself. c. The firm's labor demand curve will shift outward parallel to itself. d. The firm's labor demand curve will become steeper.
Suppose corn farmers encounter a "bumper" corn crop, which results in a significant increase in the market supply curve for corn. Increases in supply will tend to
A) decrease the price of corn. B) increase the demand for corn. C) increase the price of corn. D) decrease the demand for corn.