Other things equal, if the wage rates paid to a firm's labor inputs were to rise, we would expect the:
A. AFC, AVC, ATC, and MC curves all to rise.
B. AVC, ATC, and MC curves all to rise.
C. AFC and ATC curves to fall.
D. MP curve to fall.
Answer: B
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Which of the following means that the CPI overstates the actual inflation rate?
A) new goods bias B) quality change bias C) outlet substitution bias D) All of the above cause the CPI to overstate inflation.
Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 1,000Qmill + (Qmill)2, where Qmill indicates the mills annual production in thousands of tons. The marginal external cost of a mill's production (in dollars) is given by the formula MEC = 200 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 200,000 - 100P. Which of the following gives the market supply curve?
A. Qs = 200,000 - 100P B. Qs = 0.5P - 500 C. Qs = 150P - 150,000 D. Qs = 150P - 30,000
When savings ratios in the United States are above 5 percent, the economy grows at a rate of less than 3 percent
Indicate whether the statement is true or false
When spending falls short of output, additional inventories are created
a. True b. False Indicate whether the statement is true or false