If the MPS = .25, and investment falls from $100 to $75, real GDP will decrease by:
A. $75.
B. $100.
C. $125.
D. $150.
Answer: B
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In a perfectly competitive market profit attracts entry
a. True b. False
The labor demand curve slopes down because
A. fewer workers work at low wages. B. capital will substitute for labor as wages decrease. C. of the diminishing marginal product of labor. D. of the income effect of rising wages.
A monopolist is defined as
A) a firm with annual sales over $10 million. B) a large firm, making substantial profits, that is able to make other firms do what it wants. C) a single supplier of a good or service for which there is no close substitute. D) a producer of a good or service that is expensive to produce, requiring large amounts of capital equipment.
The case for advertising includes the fact that
A. it wastes society's scarce resources. B. it creates wants that otherwise would not have existed. C. it provides consumers with valuable information about product availability, quality, and price. D. firms spend large sums of money to create meaningless differences among products.