An increase in the wages of truck drivers might be explained by which of the following factors?
A. A reduction in the price of rail transportation
B. A reduction in the demand for transportation
C. An increase in the price of gasoline
D. An increase in competition within the trucking industry
Answer: D
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According to the circular flow, the dollar value of a nation's output is equal to
A) wages. B) profits. C) net income minus taxes. D) total income.
If a firm shuts down in the short run, it will:
A. incur losses equal to its fixed costs. B. have total revenue greater than total fixed costs. C. reduce its losses to zero. D. do this because P > AVC.
In this chapter, the discussion on competitive markets tells us that each firm's demand curve is horizontal. Is this not inconsistent with the industry's demand curve, which slopes downward?
What will be an ideal response?
During the expansion phase of the business cycle, which of the following eventually increases?
A) income B) production C) employment D) all of the above