In a perfectly competitive market, a permanent increase in demand initially brings a higher price, economic
A) loss, and entry into the market.
B) loss, and exit from the market.
C) profit, and entry into the market.
D) profit, and exit from the market.
C
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In the Keynesian model, suppose the Fed sets a target for the money supply. If the IS curve shifts to the left, and the Fed wants to keep output unchanged, what should the Fed do?
A) Reduce taxes. B) Reduce the money supply. C) Increase taxes. D) Increase the money supply.
For a firm facing a downward sloping demand curve, marginal revenue
A) is at a minimum at the midpoint of the demand curve. B) is greater at higher prices than at lower prices. C) increases each time prices are lowered. D) falls each time prices are raised.
In understanding and analyzing "market demand," we focus on how much all buyers are
A. willing and wanting to buy at different prices. B. willing and able to buy with their given income. C. willing and able to buy at different prices. D. actually buying now and in the recent past at various prices.
Wages that are above the wage that workers would accept, where the premium is paid to increase worker productivity, are referred to as:
A) wage floors. B) wage ceilings. C) efficiency wages. D) productivity wages.