An increase in the demand for houses
a. increases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor.
b. increases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.
c. decreases the equilibrium wage of carpenters and increases the value of carpenters' marginal product of labor.
d. decreases the equilibrium wage of carpenters and decreases the value of carpenters' marginal product of labor.
a
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Suppose Stan transfers $1,000 from his savings account into his checking account. What are the effects on M1 and M2 money supply?
A) M1 increases; M2 remains the same. B) M1 decreases; M2 increases. C) Both M1 and M2 increase. D) Both M1 and M2 decrease. E) Both M1 and M2 remain the same.
Suppose the price of an item in a perfectly competitive market is $3. For a firm in this market, MC = MR at an output of 100 units. The average total cost at this output level is $4 per unit, and TVC is $80. We may conclude that
A) the firm should shut down because TC > TR. B) the firm should continue to produce because P>AVC. C) the firm should shut down because its TFC is $320 and its TC is $400. D) the firm should shut down because other firms will enter the industry as the market is perfectly competitive.
Third-party beneficiaries are called
a. polluters b. indirect property owners c. free riders d. recipients of efficient market outcomes e. consumer surplus losers
Economic progress
a. reflects that people are achieving higher income levels and living standards. b. requires that individuals work longer hours. c. indicates that scarcity is no longer a problem. d. indicates income levels are higher even though environmental and health conditions have worsened.