A perfectly competitive firm will earn a positive economic profit so long as price is greater than average total cost at the profit-maximizing level of output
Indicate whether the statement is true or false
TRUE
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If a union successfully restricts the supply of labor to the firm but the union has no effect on the demand for labor, then the
A) wage increases and there is no change in employment. B) wage increases and employment increases. C) wage increases and employment decreases. D) wage increases and there is an unambiguous effect on employment.
Hedge funds, investment banks, and other non-depository financial firms are known as ________
A) the shadow banking system B) repurchasers C) subprime lenders D) CDOs
In the new classical model, the aggregate supply schedule depends on
a. the expected level of the money stock. b. the expected price level. c. the expected values of fiscal policy variables and other possible determinants of aggregate demand. d. Both a and c e. All of the above
Land includes all of the following except
a. a virgin forest b. natural-state real estate c. oil under the oceans d. deposits of copper e. an irrigation system