We depart from the assumptions of classical economics when we focus on the relationship between the quantity of output and the ________ level.
a) unemployment
b) price
c) real GDP
d) retail sales
Answer: b) price
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When Harlan County, Kentucky, has a monopsony coal mining firm,
a. d and e. b. workers will work for the firm that pays the higher wage. c. coal buyers will continue to buy coal from other counties. d. coal miners will only have one employer. e. wages will be determined only by the demand for labor.
Entry barriers are present in monopoly markets but are not in perfectly competitive markets.
Answer the following statement true (T) or false (F)
Which of the following expressions is correct for a competitive firm?
a. profit = (quantity of output) x (price - average total cost) b. marginal revenue = (change in total revenue)/(quantity of output) c. average total cost = total variable cost/quantity of output d. average revenue = (marginal revenue) x (quantity of output)
If the budget deficit increases, then
a. an increase in the interest rate increases net capital outflow. b. an increase in the interest rate decreases net capital outflow. c. a decrease in the interest rate increases net capital outflow. d. a decrease in the interest rate decreases net capital outflow.