If there is currently a recessionary gap in the economy the Fed could work toward recovery by increasing the money supply and decreasing the interest rate
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose that in November a profit-maximizing firm has 100 employees. By December, the firm has decreased employment. One can infer that, when 100 employees are hired, the
a. firm is losing market share. b. firm is minimizing losses. c. wage exceeds the value of the marginal product of labor. d. value of the marginal product of labor exceeds the wage.
Which of the following is an example of the law of demand?
A. A decrease in the price of tea is followed by a decrease in tea purchases. B. An increase in the price of tea has no effect on the amount of tea purchased. C. A decrease in the price of tea is followed by an increase in tea purchases. D. The amount of tea purchased increases when the price is constant.
Minimizing average total cost always leads to the maximization of total profit.
Answer the following statement true (T) or false (F)
Refer to the table below. Total revenues will decrease if price rises from:
Answer the question based on the following table which shows a demand schedule.
A. $1 to $2
B. $2 to $3
C. $3 to $4
D. $4 to $5