Suppose the labor market is in equilibrium. Which of the following statements is false?
A) The equilibrium wage rate is equal to the marginal revenue product of labor.
B) Some workers will earn more than the equilibrium wage.
C) At the equilibrium wage, the demand for labor is equal to the supply of labor.
D) At the equilibrium wage, the quantity of labor demanded equals the quantity of labor supplied.
C
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A monopolist is producing at an output level at which ATC = $5, P = $6, MC = $3, and MR = $4. We can conclude that
A) economic profit could be increased by producing more. B) economic profit could be increased by producing less. C) economic profit cannot be increased. D) the firm is earning $10 in economic profits.
As economic activity progresses through successive rounds of the multiplier, the additions to national income become larger and larger
Indicate whether the statement is true or false
A reduction in aggregate demand will normally reduce
a. prices. b. real GDP. c. employment. d. All of the above are correct.
Which of the following did John Maynard Keynes believe held the key to understanding fluctuations in investment?
a. how people spend their money b. how businesses make predictions c. how inflation affects the economy d. how governments enact policy