Which of the following is not a component of aggregate demand?
A. Consumption.
B. Productivity.
C. Investment.
D. Net exports.
Answer: B
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When the price of a commodity rises, we can expect
A. marginal utility of the last unit purchased will rise. B. marginal utility of the last unit purchased will fall. C. marginal utility of the last unit purchased will be unaffected. D. purchases to rise because of the increased marginal utility.
Bob, the manager and owner of a small company, believes in the theory of efficiency wages. As such, Bob would be most likely to agree with which of the following quotes?
a. "The only place where success comes before work is in the dictionary.". b. "Work hard. Play harder.". c. "Pay a man for the job you want him to do.". d. "Imagination is more important than knowledge.".
Employers may choose to pay efficiency wages that are higher than the equilibrium wage because
a. workers will be more willing to accept monitoring by their employers. b. the threat of unemployment will help prevent workers from shirking. c. the higher compensation will encourage workers to take more risks. d. higher wages will attract only the most qualified workers and thus help solve the employer's adverse selection problem 2.
If a firm’s marginal profit is negative, it should reduce its output level.
Answer the following statement true (T) or false (F)