A change in the price level in an economy will be depicted by a movement along the AE curve and not by a leftward or rightward movement of the curve
a. True
b. False
Indicate whether the statement is true or false
False
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Historic data indicate that there is usually a ________ relationship between trade deficits and federal government budget deficits
A) negative B) zero C) positive D) fluctuating
If monopolistically competitive firms earn short-run economic profits, we expect to see
A) new firms enter the industry, which shifts the demand curves of the existing firms to the left until firms earn zero economic profits. B) new firms trying to enter the industry, but unable to do so because of barriers to entry. C) existing firms altering their scale of plant to try to capture larger profits. The combined effect is to cause all firms to earn zero economic profits. D) existing firms increasing prices to try to capture larger economic profits.
Ajax Corporation has just started advertising that there are 16 ounces in every package. In reality the packages contain only 14 ounces. This misleading advertising
A) is in violation of the Robinson-Patman Act. B) is exempt from the antitrust laws. C) could be subject to an investigation by the Federal Trade Commission. D) could be subject to an investigation by the Sherman Commission.
In theory, if a profit-maximizing firm in a perfectly competitive labor market found it advantageous to hire one less worker, the firm should pay a
A. lower wage rate to all previous workers hired. B. higher wage rate to all previous workers hired. C. higher wage rate but only to the most recently hired workers. D. lower wage rate but only to the most recently hired workers.