If the economy is in an inflationary gap, which of the following is the least appropriate policy mix?
a. a budget surplus and expansionary monetary policy
b. a budget deficit and expansionary monetary policy
c. a budget deficit and contractionary monetary policy
d. a budget surplus and contractionary monetary policy
b
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The impact of an increase in the wage rate on labor supply will be represented by ________, assuming all else equal
A) a rightward shift of the labor supply curve. B) a leftward shift of the labor supply curve. C) an upward movement along the labor supply curve. D) a downward movement along the labor supply curve.
If the cross elasticity of demand for DVD players and DVDs equals -2, then the products are
A) unrelated. B) complements. C) inferior goods. D) substitutes. E) normal goods.
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment.Pat's accounting profit is ________, and Pat's economic profit is ________.
A. $15,000; ?$1,000 B. $34,000; $15,000 C. $50,000; $15,000 D. $34,000; ?$1,000
On a downward-sloping linear demand curve, demand becomes more inelastic as price decreases.
Answer the following statement true (T) or false (F)