If a firm is a perfectly competitive purchaser of factor inputs and the wage rate is $1, the marginal factor cost for labor is
A. $1.
B. less than $1.
C. greater than $1.
D. indeterminate.
Answer: A
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Political incumbents often gain or lose re-election because of a strong or weak economy. Which of the following is an exception to that rule?
A) Al Gore B) George H.W. Bush C) Jimmy Carter D) Herbert Hoover
An agreement among countries about how relative currency values should be determined is known as
A) an exchange rate system. B) an international currency market. C) a free-trade arrangement. D) a parity intervention.
A biennial budget: a. is more useful than an annual budget as a tool of discretionary fiscal policy
b. is implemented by the federal government, while an annual budget is implemented by state governments. c. would ensure that cabinet members spend more time on administering an approved budget and defending a proposed budget. d. would encourage cabinet members to focus more on running their agencies rather than being involved in budget deliberations. e. would require shorter-term economic forecasts than an annual budget.
By measuring the price elasticity of demand in terms of percentage changes, economists are able to compare the way consumers respond to changes in the prices of different products
a. True b. False Indicate whether the statement is true or false