In a perfectly competitive labor market, when a firm hires more labor
A. wages will increase.
B. wages will decrease.
C. wages will remain the same.
C. wages will remain the same.
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For a monopolist, at the profit-maximizing level of output price is:
A. equal to marginal revenue. B. equal to marginal cost. C. chosen according to demand. D. constant.
The factors of production are which of the following?
a. The outputs generated by the production process of transforming land, labor, and capital into goods and services. b. The land resources, such as natural resources, that are unimproved by human economic activity. c. Land (natural resources), labor (human capital, entrepreneurship), and capital (constructed inputs such as factories). d. Labor and capital in industrialized countries, where natural resources are no longer used to produce goods and services.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.
Keynes believed that expansionary fiscal policy could help get an economy out of an inflation.
Answer the following statement true (T) or false (F)