Workers do not know the safety records at individual firms; they only know industry averages. As a result,
A) each firm tries to outdo each other in making safety improvements.
B) each firm has the incentive to be the safest in its industry.
C) the equilibrium level of safety is less than optimal.
D) the optimal level of safety is achieved.
C
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If transaction costs are high, then it is more likely a firm's demand curve is downward sloping
Indicate whether the statement is true or false
If the price level rises, what will happen to the level of real GDP supplied?
A. It will usually decrease. B. It will usually increase. C. Nothing. D. It will decrease at first and then increase.
A firm's marginal revenue product of labor curve is also
A. its labor demand curve. B. its long-run input cost function. C. its total revenue line. D. its marginal cost curve.
Related to the Economics in Practice on p. 431: ________ is responsible for producing and maintaining the National Income and Product Accounts (NIPAs).
A. The Department of Commerce B. The Department of the Treasury C. The Federal Reserve Bank D. Congress