When a minimum wage is ________, the firms' surplus and workers' surplus shrink, a deadweight loss ________, and resources are lost in job search
A) inefficient; arises
B) inefficient; disappears
C) efficient; arises
D) efficient; disappears
E) nonexistent; arises
A
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Using the DD-AA framework, which one of the following statements is the MOST accurate?
A) Only monetary policy can bring the economy to full employment. B) Only fiscal policy can bring the economy to full employment. C) Only both monetary and fiscal policies can bring the economy to full employment. D) Both policies are capable of bringing the economy to full employment and low inflation. E) Monetary policy by itself or fiscal policy by itself can bring the economy to full employment.
Marginal Revenue is
A) the increase in total revenue from selling one more unit of output. B) equal to P(1 + 1/e). C) equal to P when the price elasticity of demand is infinite. D) All of the above.
If total utility is positive, marginal utility must also be positive
Indicate whether the statement is true or false
Equilibrium GDP could be upset by a change in
A. Any leakage or injection. B. Leakages only. C. Injections only. D. Investment only.