"Supply-side" economists argue that increased regulations on firms by the government will......
What will be an ideal response?
decrease aggregate supply and increase prices
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A firm pays Pam $40 per hour to assemble personal computers. Each day, Pam can assemble 4 computers if she works 1 hour, 7 computers if she works 2 hours, 9 computers if she works 3 hours, and 10 computers if she works 4 hours. Pam cannot work more than 4 hours day. Each computer consists of a motherboard, a hard drive, a case, a monitor, a keyboard, and a mouse. The total cost of these parts is $600 per computer. If the firm sells each computer for $625, then how many hours a day should the firm employ Pam to maximize its net benefit from her employment?
A. 1 hour B. 3 hours C. 2 hours D. 4 hours
Falling interest rates can
A) raise the cost of buying new homes and fewer new homes will be purchased. B) lower the cost of buying new homes and fewer new homes will be purchased. C) raise the cost of borrowing for firms and decrease investment. D) increase a firm's stock price, which causes firms to issue more stock shares, and thus increases funds for investment.
Everything else held constant, which of the following does NOT cause aggregate demand to increase?
A) an increase in net exports B) an increase in government spending C) an increase in taxes D) an increase in consumer optimism
Marginal revenue is the addition to a firm's revenue from
a. a $1 change in price. b. a one-unit change in output. c. the sale of inferior output. d. a $1 reduction in marginal cost.