The long-run aggregate supply curve will shift to the right if the:
A. economy loses productive capacity.
B. profit levels of firms increase.
C. economy experiences a supply shock.
D. potential output of the economy expands.
Answer: D
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A ________ system is one in which households pay the same percentage of their incomes in taxes regardless of their income level
A) progressive B) regressive C) proportional D) complementary
Corporate profits are taxed twice because
A. capital gains are not indexed to the rate of inflation. B. it is economically efficient to reduce the amount of retained earnings. C. the government wants to minimize the amount of tax paid on capital gains. D. taxes are collected on profits before profits are distributed to shareholders.
Which of the following is FALSE with respect to brand names and advertising?
A. Because "differentness" has value to customers, monopolistically competitive firms regard their brand names as valuable. B. There is considerable shifting over time in the market value rankings of various U.S. product brands. C. Firms use trademarks-words, symbols, and logos-to distinguish their product brands. D. Companies do not regard their brands as valuable private (intellectual) property because the value cannot be quantified.
XYZ Co operates in a competitive market. Its marginal product of labor is 1/L, and it takes the wage and price as given. Derive the firm's short-run demand for labor as a function of w and p. How much labor will the firm hire if w = 2 and p = 10?
What will be an ideal response?