If the price of labor increases, the typical perfectly competitive firm in the short run will
A) produce more output.
B) hire less labor.
C) hire the same labor and produce the same output.
D) hire more labor.
Answer: B
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Implicit costs are costs that:
A. require a firm to spend money. B. represent forgone opportunities. C. do not depend on the quantity of output produced. D. depend on the quantity of output produced.
In the presence of free trade, how are the effects of economic growth different for a large country than for a small country?
What will be an ideal response?
Net investment plus depreciation is equal to:
A. gross depreciation. B. gross domestic product. C. gross exports. D. gross investment.
Refer to the information provided in Figure 31.1 below to answer the question(s) that follow.
Figure 31.1Refer to Figure 31.1. A movement from Point B to Point D represents
A. economic decline. B. an increase in capital stock. C. an increase in the labor force. D. technological progress.