If the MRP of labor is below the wage rate, the firm should lay off workers
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose that an early frost damages the Florida orange crop. As a result, the price of California oranges increases. Ceteris paribus, which one of the following statements best explains this situation?
A) The supply of Florida oranges decreased, causing the supply of California oranges to increase, which resulted in a higher price. B) The supply of Florida oranges decreased, causing the supply of California oranges to decrease, which resulted in a higher price. C) The supply of Florida oranges decreased, causing their price to increase, and thus causing the demand for California oranges to increase. D) The demand for Florida oranges fell because of the freeze, and this led to a higher demand for California oranges.
An exchange rate that varies according to supply and demand for the currency in the foreign exchange market is called a ________ exchange rate.
A. flexible B. nominal C. fixed D. real
Refer to the above graph. Consider a monopolist in short-run equilibrium. This monopolist:
A. has a loss per unit equal to DE. B. will cease production since its economic profits are negative. C. earns economic profit equal to area ABED. D. has total fixed costs equal to area BEFC.
Other things equal, a 10 percent decrease in corporate income taxes will:
A. decrease the market price of real capital goods. B. have no effect on the location of the investment-demand curve. C. shift the investment-demand curve to the right. D. shift the investment-demand curve to the left.