If the wage rate? doesn't change but a? profit-maximizing competitive firm hires fewer? workers, we know that
A) the price of the product increased.
B) technical change occurred that increased labor productivity, reducing the firm's demand for labor.
C) demand for the product fell or there has been a reduction in labor productivity.
D) marginal factor cost increased.
Answer: C) demand for the product fell or there has been a reduction in labor productivity.
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If the average product of labor equals the marginal product of labor, then
A) the average product of labor is at a maximum. B) the marginal product of labor is at a maximum. C) Both A and B above. D) Neither A nor B above.
The demand for grape-flavored Hubba Bubba bubble gum is likely
a. inelastic because there are many close substitutes for grape-flavored Hubba Bubba . b. elastic because there are many close substitutes for grape-flavored Hubba Bubba. c. inelastic because the market is broadly defined. d. elastic because the market is broadly defined.
Which of the following will be an effect of the Fed selling open market securities?
A. Business investment will be discouraged. B. Household savings will be discouraged. C. Household consumption will be encouraged. D. None of the choices are correct.
Trade restrictions can prevent purchasing power parity from holding because:
A. they can add costs to the selling price because they add to the seller's cost. B. the time and energy of importation paperwork can add to the cost of the good sold. C. tariffs can add to the cost of the good sold. D. All of these statements are true.