In its effort to maximize economic profit, a firm characterized as a price setter must determine:
A) only the price it should charge.
B) only the quantity it should produce.
C) both the price it should charge and the quantity it should produce.
D) neither the price it should charge and the quantity it should produce as these are both determined by forces beyond the firm's control.
C
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If the price of TVs produced by XYZ-TV Company falls from $1,000 to $750 per TV set, then the:
A. supply of labor to the XYZ-TV Company increases. B. demand for labor by the XYZ-TV Company increases. C. supply of labor to the XYZ-TV Company decreases. D. demand for labor by the XYZ-TV Company decreases.
Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Which of the following allows workers to focus on the types of production where they have an advantage?
a. Deindustrialization b. Diseconomies of scale c. Scarcity d. Specialization
The substitution effect of wages explains shifts in the labor supply curve.
Answer the following statement true (T) or false (F)