Assuming a 5-percent decrease in both the nominal (money) wage and 5-percent increase in the price level in the classical model, then
a. both the quantity supplied and demanded of labor will increase.
b. the quantity supplied of labor will increase and the quantity demanded of labor will decrease.
c. both the quantity supplied and demanded of labor will decrease.
d. the quantity of labor supplied and demanded would remain constant.
D
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Suppose a firm can only vary the quantity of labor hired in the short run. An increase in the cost of capital will
A) increase the firm's marginal cost. B) decrease the firm's marginal cost. C) have no effect on the firm's marginal cost. D) More information is needed to answer the question.
Nation A's real GDP was $520 billion in 2013 and $550 billion in 2014. Its population was 150 million in 2013 and 155 million in 2014. On the other hand, Nation B's real GDP was $200 billion in 2013 and $210 billion in 2014; and its population was 53 million in 2013 and 55 million in 2014. Which of the following statements is true?
A. Nation A's GDP per capita increased from 2013 to 2014, while Nation B's decreased B. Nation B's GDP per capita increased from 2013 to 2014, while Nation A's decreased C. Nation A's and Nation B's GDP per capita both decreased from 2013 to 2014 D. Nation A's and Nation B's GDP per capita both increased from 2013 to 2014
When a firm’s fixed costs increase it should raise its prices in order to maximize profits.
Answer the following statement true (T) or false (F)
Which of the following would not appear on a firm's accounting statement?
a. sunk costs b. fixed costs c. explicit costs d. implicit costs e. insurance costs