Figure 4-19
After a strike against the Financial News in London began, the number of copies of the competing Broad Street Journal sold in England increased dramatically, yet there was no increase in price. Which supply and demand graph in Figure 4-19 represents the situation for the Broad Street Journal before the strike started?
a.
1
b.
2
c.
3
d.
4
b
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The degree of wage stickiness in the real world:
A. is controversial, even among economists. B. is agreed upon by economists, but not accepted by others, like policymakers. C. is agreed upon by economists as a concept, but controversial in how it's measured. D. has been estimated by economists.
e real interest rate is 4 percent a year. When the expected inflation rate is zero, the nominal interest rate is approximately ________ percent a year; and when the expected inflation rate is 2 percent a year, the nominal interest rate is approximately ________ percent a year.
What will be an ideal response?
If a purely competitive firm shuts down in the short run:
A. its loss will be zero. B. it will realize a loss equal to its total variable costs. C. it will realize a loss equal to its total fixed costs. D. it will realize a loss equal to its explicit costs.
The marginal product of labor is defined to be
a. the additional output attributable to the last unit of labor employed. b. the amount of output obtained, on average, from each unit of labor employed. c. the percentage increase in output caused by a 1% rise in labor usage. d. the amount of capital that the firm can use to replace one unit of labor.