If a firm's total revenue just covers its implicit and explicit costs of production, then
A. the economic cost of production exceeds total revenue.
B. accounting profit is zero.
C. economic profit is zero.
D. total revenue exceeds the economic cost of production.
Answer: C
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The impact of a decrease in the wage rate on labor supply will be represented by ________, assuming all else equal
A) a rightward shift of the labor supply curve B) an upward movement along the labor supply curve C) a leftward shift of the labor supply curve D) a downward movement along the labor supply curve
If your total satisfaction increases when you consume another unit, your marginal utility must be
A) positive. B) increasing. C) decreasing. D) negative.
A firm that wishes to maximize profits will continue to hire labor until the
A) real wage = MPL. B) nominal wage = MPL. C) nominal wage = the real wage. D) nominal wage = the price level.
The quantity theory of money tells us that real money balances are proportional to income, since ________
A) velocity is assumed constant in the short run B) the supply and demand of money are equal in equilibrium C) changes in the quantity of money lead to proportional changes in the price level D) all of the above E) none of the above