Which of the following mechanisms helps output to return to potential after a demand shock?
a. Change in business mentality
b. Change in nominal wage rate
c. Large changes in the capital stock
d. Inability of the price level to change
e. Change in inventories
B
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A minimum wage rate that is set ________ the equilibrium real wage rate creates a ________ of labor
A) below; surplus B) below; shortage C) above; surplus D) above; shortage E) equal to; shortage
Sales taxes are
A) assessed on the prices paid on a large set of goods and services. B) levied on purchases of a particular good or service. C) based on each individual taxpayer's income level. D) collected only by the U.S. government.
Which of the following is true?
a. Items that supply the nation's currency to the foreign exchange market are recorded as credits in the nation's balance of payments accounts. b. Items that create a demand for the nation's currency in the foreign exchange market are recorded as debits in the nation's balance of payments accounts. c. The purchase of a BMW from a German automaker by a U.S. college professor would be recorded as a debit in the U.S. balance of payments accounts. d. Both a. and b. are correct.
Total cost is the
a. amount a firm receives for the sale of its output. b. fixed cost less variable cost. c. market value of the inputs a firm uses in production. d. quantity of output minus the quantity of inputs used to make a good.