The classical model does a good job of explaining short-run fluctuations in the level of economic activity
a. True
b. False
B
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Why do workers exert more effort when they are paid higher salaries?
What will be an ideal response?
The purchasing power parity theory of exchange rate determination states that
a. in the short run, rates will adjust to parity. b. in the long run, the rate reflects differences in price levels between the two countries. c. in the long run, a government agency sets the rate at parity. d. in the short run, the cost of labor really sets the exchange rate.
As more units of an item are purchased, everything else equal, marginal satisfaction from consuming additional units will tend to
a. decrease at the same rate for all consumers. b. decrease but at different rates for different people. c. increase at the same rate for all consumers. d. increase but at a decreasing rate for all consumers.
What quantity should the purely competitive firm produce to maximize profits? Analyze from a total revenue and total cost perspective and a marginal revenue and marginal cost perspective
What will be an ideal response?