When MFC > MRP, a firm in a competitive market will
A. hire more workers.
B. earn additional profits.
C. layoff workers.
D. stop hiring additional workers.
Answer: C
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Use the following figures to answer the next question.
In the diagrams, AD1 and AS1 are the "before" curves. Stagflation is depicted by ________.
A. panel (A) only B. panel (B) only C. panel (C) only D. panels (B) and (C)
Resources that ________ protected by well-defined property rights are in ________ of being depleted
A) are; great danger B) are; absolutely no danger C) are not; the greatest danger D) are not; little danger
President Bush lowered income taxes for individuals in 2001. Explain how lower income taxes affect the aggregate demand curve
What will be an ideal response?
An increase in credit market frictions
A) decreases labor supply. B) decreases labor demand. C) decreases consumption demand. D) decreases investment demand.