In a market economy, _____ own(s) all the basic resources or factors of production
a. households
b. the federal government
c. the Federal Reserve bank
d. the local government
e. business firms
a
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The labor force participation rate is the ratio of
A) (the labor force divided by the working-age population) multiplied by 100. B) (the number of unemployed divided by the working-age population) multiplied by 100. C) (the labor force divided by the total population) multiplied by 100. D) (the number of unemployed divided by the labor force) multiplied by 100.
A decrease in the rate of interest, other things being equal, will cause a:
a. rightward shift of the investment demand curve. b. movement upward along the investment demand curve. c. movement downward along the investment demand curve. d. leftward shift of the investment demand curve.
The figure below illustrates a tariff. On the graph, Q represents quantity and P represents price.
Figure 17-11
Refer to Figure 17-11. The tariff
a.
decreases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F.
b.
decreases producer surplus by the area C + D and decreases consumer surplus by the area D + E + F.
c.
increases producer surplus by the area C and decreases consumer surplus by the area C + D + E + F.
d.
increases producer surplus by the area B + C and decrease consumer surplus by the area D + E + F.
To maximize profits, a competitive firm will seek to expand output until
A. Price equals marginal cost. B. The elasticity of demand equals 1. C. Price equals $0. D. Total revenue equals total cost.