Explanations for the decline in U.S. productivity in the 1970s and 1980s include all of the following except:
a. difficulties with measuring service sector output.
b. the entry into the labor force of many young, inexperienced workers.
c. a wave of corporate mergers that reduced competition.
d. rising oil prices.
c. a wave of corporate mergers that reduced competition.
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As long as it does not shut down, a profit-maximizing perfectly competitive firm will
A) always earn an economic profit. B) produce so that marginal revenue equals marginal cost. C) produce so that price equals average cost. D) never set its price equal to its marginal revenue.
Because the labor supply curve for a monopsonist is upward sloping, the monopsonist
A) hires zero units of labor. B) chooses the perfectly competitive quantity of labor. C) must increase the wage to attract more units of labor. D) must take the wage as given by the market.
A person who uses a rule of thumb to determine the best rate of savings:
A. is necessarily making a mistake, since finding the best rate of savings involves complex mathematical models. B. is necessarily making a mistake, since there is no single best rate of savings. C. is not necessarily making a mistake because rules of thumb often arise out of trial and error or from observation of others' successful decisions. D. is not necessarily making a mistake because, in the long run, all rates of savings turn out to yield the same economic benefit.
A multilateral approach to free trade has greater potential to increase the gains from trade than a unilateral approach, because the multilateral approach can reduce trade restrictions abroad as well as at home
a. True b. False Indicate whether the statement is true or false