Economic profits and the performance of stock
A) are independent of each other.
B) are negatively related.
C) are positively related.
D) are positively related only during downturns in the business cycle.
C
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In the labor market, an increase in labor productivity ________ the real wage rate and ________ the level of employment
A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases
Suppose Mary receives an $8,000 loan from First National Bank. Mary repays $8,480 to First National Bank at the end of one year. Assuming the simple calculation of interest, the interest rate on Mary's loan was:
A. $480 B. 8.00% C. 6.00% D. 5.66%
Suppose supply decreases and demand increases. What effect will this have on the price?
A. It will rise. B. It will fall. C. It will remain the same. D. It may rise or fall.
Suppose that initially, the equations for demand and supply are Qd = 48 ? 4P and Qs = 4P ? 16, respectively. If the quantity supplied decreases by 4 at every price (so that the supply curve shifts to the left), the equilibrium price will change from:
A. $8.50 to $7.50. B. $8 to $8.50. C. $8 to $7.50. D. $7.50 to $8.50.