An economy in which output has decreased and prices have increased would suggest that there has been a:
A. positive supply side shock.
B. negative supply side shock.
C. positive demand side shock.
D. negative demand side shock.
B. negative supply side shock.
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Corporate profits are taxed at too low a rate.
Indicate whether the statement is true or false.
Which of the following will not shift the demand curve for labor?
A. the use of a larger stock of capital with the labor force B. a change in the wage, marginal resource cost C. the adoption of a more efficient method of combining labor and capital in the production process D. an increase in the price of the product that labor is helping to produce
A local retailer has decided to carry a well-known brand of shampoo. The marketing department tells them that the quarterly demand by an average man is: Qd = 3 - 0.25P and the quarterly demand by an average woman is: Qd = 4 - 0
5P The market consists of 10,000 men and 10,000 women. How may bottles of shampoo can they expect to sell if they charge $6 per bottle? A) 20,000 B) 33,000 C) 25,000 D) 10,000 E) none of the above
A market equilibrium will generate the largest possible surplus when:
A. there are no external benefits and external costs. B. there is perfect competition. C. perfect information is available. D. All of these.