Because of a decrease in the wage rate it must pay, a perfectly competitive firm's marginal costs decrease but its demand curve stays the same. As a result, the firm
A) decreases the amount of output it produces and raises its price.
B) increases the amount of output it produces and lowers it price.
C) increases the amount of output it produces and does not change its price.
D) decreases the amount of output it produces and lowers its price.
C
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Comparing the California test scores to test scores in Massachusetts is appropriate for external validity if
A) Massachusetts also allowed beach walking to be an appropriate P.E. activity. B) the two income distributions were very similar. C) the student-to-teacher ratio did not differ by more than five on average. D) the institutional settings in California and Massachusetts, such as organization in classroom instruction and curriculum, were similar in the two states.
A movement up along a short run Phillips Curve to an unemployment rate below the natural rate of unemployment will tend to shift the Phillips Curve up, once expectations adjust; a movement down along a short run Phillips Curve to an unemployment rate above the natural rate of unemployment will tend to shift the Phillips Curve down once expectations adjust
a. True b. False Indicate whether the statement is true or false
Arrow's impossibility theorem demonstrates the impossibility of the median voter theorem
a. True b. False Indicate whether the statement is true or false
Which of the following is the primary source of high earnings in a market economy?
A) a willingness to engage in actions where you gain at the expense of others B) a willingness to work hard even if you are not productive C) a willingness to exploit workers and consumers D) the ability to provide others with things that they value highly