Which of the following is NOT mentioned in the textbook as a constraint that affects the economy?
A. Households are limited in what they can purchase by government regulations.
B. Households are limited in what they can purchase by their income.
C. Businesses are limited in what they can produce by past investments in factories, processes and materials.
D. Businesses are limited in what they can produce by technology.
Answer: A
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A movement upward and to the left along a demand curve is called a(n)
a. increase in demand.
b. decrease in demand.
c. decrease in quantity demanded.
d. increase in quantity demanded.
If an employer has to raise the wage rate of workers in order to employ more labor, then the marginal labor cost curve of the employer:
A. Lies above the supply curve of labor B. Is the supply curve of labor that it faces C. Lies below the supply curve of labor D. Is a downward-sloping curve
An office supply store sells a ream of printer paper at a fixed price of $4.50. Which of the following is a term used by economists to describe the money received from the sale of an additional ream of paper?
A) pure profit B) gross earnings C) marginal costs D) marginal revenue E) net benefit
All of the following are true regarding transfer prices except which one?
A) Transfer prices can affect the taxes a firm must pay. B) The transfer price is the internal firm price on an input that input-producing division charges the input-using division. C) Transfer prices occur when a firm engages in divestiture. D) Transfer prices are an accounting entry for the within-firm price of an input.