The misperception effect explanation for an upward-sloping short-run aggregate supply curve is based on:
a. falling profit margins as the price level rises
b. rising costs of production as the price level rises.
c. fixed wage labor contracts.
d. people mistaking changes in aggregate demand for changes in the demand for their goods relative to other goods and services.
d
You might also like to view...
Suppose the tax rate on interest income is 25 percent, the real interest rate is 4 percent, and the inflation rate is 4 percent. In this case, the real after-tax interest rate is
A) 4.0 percent. B) .5 percent. C) 2.0 percent. D) 1.0 percent. E) 3.5 percent.
The oldest theory of comparative advantage is based on:
a. factor abundance. b. productivity differences. c. product life cycles. d. preferences. e. human skills.
A merger wave can be set off
a. by government restrictions that prevent firms from reaching their minimum efficient scale b. if the federal government raises corporate income taxes. c. if the federal government lowers corporate income taxes d. if minimum efficient scale falls e. by some change in a market, such as a shift in market demand.
Number of EmployeesTotal Output16211315418520Table 16.2 Table 16.2 gives the number of oil changes that can be performed at a local oil change business based on the number of employees hired. If the price of an oil change is $20, and workers get paid $90 per day, which of the following is equal to 3?
A. The optimal number of employees to hire B. The marginal product of the fourth employee C. The marginal revenue of the third employee D. The marginal cost of the first oil change