Which of the following statements most likely lies within the realm of microeconomics?
a. Unemployment rises during a recession and falls during an expansion
b. A rapid acceleration of the supply of money may create inflation.
c. An increase in government spending will increase the aggregate demand for goods and services in the economy.
d. An increase in labor costs will increase the additional cost of producing another airplane.
d
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Market failure occurs when no individual has the ability to substantially influence market prices
a. True b. False Indicate whether the statement is true or false
What will happen to the equilibrium price and quantity of new cars if the price of gasoline rises, the price of steel rises, public transportation becomes cheaper and more comfortable, and auto-workers negotiate higher wages?
a. Price will fall, and the effect on quantity is ambiguous. b. Price will rise, and the effect on quantity is ambiguous. c. Quantity will fall, and the effect on price is ambiguous. d. Quantity will rise, and the effect on price is ambiguous.
Homogeneous oligopoly exists where a small number of firms are:
A. producing virtually identical products. B. setting price and output independently. C. setting price and output collusively. D. producing differentiated products.
Total product divided by the variable input is
A. average total cost. B. average product. C. marginal cost. D. marginal product.