When deriving the aggregate demand (AD) curve from the aggregate expenditures model, an increase in U.S. product prices would cause an increase in:
A. the value of household wealth and lower consumption expenditures.
B. interest rates and lower investment expenditures.
C. exports and imports.
D. U.S. resource prices and an increase in aggregate supply.
B. interest rates and lower investment expenditures.
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Why is it the case that taxes in one market can have impacts on supply and demand in others and should policy makers take this into account when setting taxes?
What will be an ideal response?
A firm's labor demand curve shows the relationship between the
a. wage rate and the quantity of labor supplied b. marginal revenue product of labor and the marginal product of labor c. wage rate and the quantity of labor demanded d. marginal product of labor and the quantity of labor demanded e. wage rate and the quantity demanded of the good produced by labor
The government spends ________ of all health care dollars in the U.S.
A. 10% B. 25% C. 100% D. approximately half
Which of the following statements is false?
A. If economic profit is negative, accounting profit must also be negative. B. Explicit costs of using market-supplied resources entail an opportunity cost equal to the dollar cost of obtaining the resources in the market. C. If economic profit is positive, accounting profit must also be positive. D. When economic profit is zero, the firm's owners could not have done better putting their resources in some other industry of comparable risk. E. None of the above statements is false.