Kyle works for a perfectly competitive firm where he receives a wage rate of $15. From this, one can infer that:
A. Kyle's reservation wage is $15.
B. Kyle's value of marginal product is at least $15.
C. the price of the firm's output is at least $15.
D. Kyle's marginal product is at least $15.
Answer: B
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According to the traditional Keynesian analysis, if the government increases spending and pays for all of it by raising current taxes, then
A) a budget surplus will occur. B) aggregate demand will increase. C) a budget deficit will occur. D) aggregate demand will decrease.
A profit-maximizing price searcher will expand output to the point where
a. total revenue equals total cost. b. marginal revenue equals marginal cost. c. price equals average total cost. d. price equals marginal cost.
Exhibit 2-18 Production possibilities curves
In Exhibit 2-18, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This country:
A. is producing the same number of capital goods in both years. B. is producing the same number of consumption goods in both years. C. has shown no growth between Year X and Year Y. D. has higher unemployment in Year X than in Year Y.
Sellers can increase total revenues by charging different individuals the maximum amount they are willing to pay.
Answer the following statement true (T) or false (F)