If marginal revenue exceeds marginal cost, a price-taker firm should
a. expand output.
b. reduce output.
c. lower its price.
d. do both a and c.
A
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) The migration of labor from low-income country B to high-income country A will:
A. Increase domestic output in both countries
B. Decrease domestic output in both countries
C. Increase domestic output in country A and decrease domestic output in country B
D. Decrease domestic output in country A and increase domestic output in country B
If average labor productivity decreases, then the same number of employed workers will always produce:
A. more total output. B. less output per person. C. less total output. D. more output per person.
The effect of a Pigovian tax on a market is:
A. decreased price and quantity to the efficient level. B. decreased price and increased quantity to the efficient level. C. increased price and reduced quantity to the efficient level. D. increased price and quantity to the efficient level.
Other things being equal, an increase in the money supply causes a(n) __________ in the interest rate and a(n) __________ in investment, which in turn causes a(n) __________ in aggregate demand.
A. increase; decrease; decrease B. increase; increase; decrease C. decrease; increase; increase D. decrease; decrease; increase