An increase in output will tend to
a. increase productivity in the economy as a whole
b. reduce prices of non-labor inputs and other commodities in limited supply in the short run
c. increase real wage rates
d. increase nominal wage rates
e. decrease the price level
D
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Assume that it is predicted that for the years after you graduate from college, the entire economy will experience a long period of prosperity when incomes grow rapidly
What type of industry would be the best for you to find employment if this prediction is correct? An industry that produces a product that is A) income elastic. B) income inelastic. C) inferior. D) a substitute good. E) none of these industries
Which of the following can a firm use to reduce competition in the market?
a. Locking in customers to long term contracts b. Seek an exclusive government contract c. Acquire patents d. All the above
Average cost is
a. Total variable cost divided by total units produced b. Total fixed cost divided by total units produced c. Total cost divided by total units produced d. Equal to marginal cost
Which of the following properties hold true for the equilibrium price-quantity combination?
a. Buyers who are willing to pay higher than the equilibrium price do not find sellers. b. At the equilibrium price producer surplus equals consumer surplus. c. The equilibrium output is produced at the lowest avoidable cost. d. The equilibrium output is produced at the lowest opportunity cost.