Which of the following represents a long-run adjustment?
A. Unable to meet foreign competition, a U.S. watch manufacturer sells one of its branch plants.
B. A supermarket hires four additional clerks.
C. A farmer uses an extra dose of fertilizer on his corn crop.
D. A steel manufacturer cuts back on its purchases of coke and iron ore.
Answer: A
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The purely competitive employer of resource A will maximize the profits from A by equating the
A. price of A with the MRC of A. B. marginal productivity of A with the price of A. C. price of A with the MRP of A. D. marginal productivity of A with the MRC of A.
Who is cyclically unemployed?
A) Katrina, an assistant manager who quit her job to search for a better job closer to home B) David, a new car salesman who lost his job because the economy went into a recession C) Samantha, who quit her job to return to college to earn her MBA D) Casey, who lost his job because the technology changed so he was no longer needed E) Kathy, a steelworker who was laid off but has stopped looking for a new job because she can't find a new job
Other things equal, a decrease in the personal income tax rate will ________ disposable income, which leads to ________ in output and employment
A) increase; an increase B) increase; a decrease C) decrease; an increase D) decrease; a decrease
Why would candy companies in the United States dislike the U.S. trade barriers on imported sugar?
a. Barriers decrease the cost of production, making candy less expensive. b. Barriers decrease the cost of production, making candy more expensive. c. Barriers increase the cost of production, making candy more expensive. d. Barriers increase the cost of production, making candy less expensive.