The marginal revenue product curve shifts when
A. the wages paid exceed the price.
B. wages fall.
C. there is a change in the product price workers are producing.
D. wages rise.
Answer: C
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When the price level increases, aggregate planned expenditure decreases, which leads to
A) a rightward shift of the aggregate demand curve. B) neither a movement along nor a shift of the aggregate demand curve. C) a downward movement along the aggregate demand curve. D) an upward movement along the aggregate demand curve. E) a leftward shift of the aggregate demand curve.
Which of the following is an important real consequence of the public debt of the United States?
A. It will threaten to bankrupt the Federal government B. It discourages saving among the general public C. It decreases the inequality in the distribution of income in the U.S. D. Its consequent higher interest rates lead to fewer incentives to bear risk and innovate
At $6 per steak, consumers are willing to buy two steaks. At a price of $2, consumers are willing to buy six steaks. The elasticity of the market demand curve between P = $6 and P = $2 (dropping all minus signs) is
A. 0.33. B. 1 C. 2 D. 4
As the price of a good rises:
A. firms generally decrease the supply of the good. B. government regulation becomes more justified. C. firms generally increase the supply of the good. D. more firms can cover their opportunity cost of producing the good.