Refer to Figure 8.3. Holding other variables constant, a decrease in households' wealth accompanied by an increase in the capital stock will definitely result in
A) an increase in the equilibrium quantity of labor.
B) a decrease in the equilibrium quantity of labor.
C) an increase in the equilibrium real wage.
D) a decrease in the equilibrium real wage.
A
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A situation in which a market economy leads to too few or too many resources going to a particular economic activity is known as
A) competition. B) excessive competition. C) destructive competition. D) a market failure.
The PPP theory says that in the long run the exchange rate between two currencies should move toward __________ the cost in each country of an identical basket of internationally traded goods
a. equalizing b. minimizing c. maximizing d. reducing to zero e. disequilibrating
Celia buys 24 gallons of gasoline per month when the price is $2 per gallon, but only 16 gallons if the price rises to $3 per gallon. Within this range, her demand for gasoline is
a. unitary elastic b. perfectly inelastic c. perfectly elastic d. inelastic e. elastic
At what point does the marginal cost curve cross the average total cost curve?
a. at the lowest point on the ATC curve b. when ATC is near, but not at, zero c. when diminishing marginal product sets in d. at the highest point on the MC curve