A firm's demand for labor is derived from its decision to supply a good in another market
a. True
b. False
Indicate whether the statement is true or false
True
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In order for someone to switch from borrowing to saving when the interest rate falls, it must be that current consumption is an inferior good.
Answer the following statement true (T) or false (F)
A consumer buys food (F) and shelter (S). If the consumer's income rises and there is no change in the prices of F or S, the marginal rate of transformation of F for S will
A) increase. B) decrease. C) stay the same. D) change, but there is not enough information to know how.
For an economy in equilibrium, the Keynesian model suggests that the plot of aggregate expenditure against RGDP: a. is a vertical line
b. has slope lesser than 1. c. has slope equal to 1. d. is a horizontal line.
Consider a perfectly competitive market in which the firms are earning above-normal profit in the short run. In the long run, forces will come into play to
a. decrease market supply b. shift the horizontal demand curve facing each firm downward c. increase the market price d. encourage existing firms to increase output e. decrease the number of sellers in the market