What did NOT cause the 2008-2009 recession?
A. Decrease in AD
B. Housing bubble burst
C. Large banks and corporations shut down
D. Improper fiscal policy
E. Stock market and wealth decrease
Ans: D. Improper fiscal policy
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In monopolistic competition, a firm has some ability to affect the price for its product because of
A) easy entry and exit. B) economic profits. C) product differentiation. D) many competitors.
The marginal product of labor (measured in units of output) of a firm is given by MPN = A(2000 - N)
where A measures productivity and N is the number of labor hours used in production. Suppose the price of output is $6 per unit and A = 0.002. (a) What will be the demand for labor if the nominal wage is $18? (b) What will be the demand for labor if the nominal wage rises to $21?
The practice of tying can be used as a means of discriminating in price between two different customers
Indicate whether the statement is true or false
The bulk of exports from industrial countries are
a. manufactured goods b. primary products c. agricultural goods d. raw materials e. raw sugar products