The entry of firms into a market
A. Reduces the profits of existing firms in the market.
B. Shifts the market supply curve to the left.
C. Shifts the market demand curve to the left.
D. Increases the equilibrium price.
Answer: A
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The multiplier-accelerator model was developed by
A) Paul Samuelson. B) classical economists. C) Walter Heller. D) John Maynard Keynes.
A firm that fills its vacancies in the upper levels of the hierarchy with its own employees:
a. avoids opportunistic behavior by employees. b. uses an internal labor market. c. avoids the difficult tasks of measuring and comparing the productivities of individual workers. d. pays them according to their performance rather than seniority.
If the government reduces transfer payments, what happens to the budget deficit? What curve does this change in the market for loanable funds, which direction does it shift, and what happens to the equilibrium interest rate?
In new growth theory, growth in real GDP per person occurs because
i. human capital grows indefinitely. ii. technology advances as a result of choices individuals make. iii. profit incentives encourage technological change. A) i only B) ii only C) iii only D) both i and iii E) i, ii, and iii