The short-run aggregate supply curve slopes:
a. downward because firms can sell more, and hence, will produce more when prices are lower
b. downward because firms find it costs less to purchase labor and other inputs when prices are lower and hence, they produce more.
c. upward because firms normally can purchase some labor and other inputs at fixed costs for some period of time.
d. upward because firms find that it costs more to purchase labor and other inputs when prices are higher and hence they must produce and sell more in order to make a profit.
c
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Life-cycle saving is saving:
A. for protection against unexpected setbacks, such as the loss of a job or a medical emergency. B. to pay life-insurance premiums. C. for the purpose of leaving an inheritance. D. to meet long-term objectives, such as retirement, college attendance, or the purchase of a home.
Which of the following is true of Western Europe, Japan, Canada, Mexico, and China taken together?
a. All these countries are classified as high-income countries by the World Bank. b. They are all members of the North American Free Trade Agreement [NAFTA]. c. All these countries are considered developing countries by the World Bank. d. They are collectively the largest trade partners of the U.S. e. They are the five largest exporters of agricultural produce in the world.
The demand for labor is a derived demand. Employers hire workers until the
a. wage rate equals the average product of labor. b. wage rate equals the marginal revenue product of labor. c. last worker hired adds nothing to total output. d. average product of labor is zero.
The reason why a cure to a disease such as AIDS would have less elastic demand than a vaccine at every price is that
A. for a person without AIDS, there are no substitutes. B. the cure would be more expensive. C. the vaccine would be more expensive. D. for a person without AIDS, there is a freely available substitute-monogamy with an unaffected partner.