Labor demand depends on the interest rate because
A) household savings depend on the interest rate.
B) firms discount future profits.
C) of Ricardian equivalence.
D) Labor demand actually does not depend on the interest rate.
D
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Firms are often more efficient than markets as coordinators of economic activity because
A) firms can achieve lower transaction costs. B) markets cannot coordinate production. C) firms don't rely on economies of scale while markets do. D) firm coordination is always more economically efficient than market coordination.
At a given output level, a monopolist earns a profit only if the
a. slope of its TR curve exceeds the slope of his TC curve. b. height of its MR curve exceeds the height of his MC curve. c. height of its demand curve exceeds the height of his MR curve. d. height of its demand curve exceeds the height of his ATC curve.
How will an increase in the efficiency of the payments mechanism effect velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to payments.
The law of diminishing returns
a. explains why marginal cost eventually increases as output expands. b. implies that average fixed cost will remain unchanged as output expands. c. is true for physical production activities but not for activities such as studying. d. applies to a capitalist economy but would be irrelevant if the means of production were owned by the state.