In a perfectly competitive market, which of the following will increase the economic profit the firms make in the short run?
A) a decrease in market demand
B) an increase in market demand
C) an increase in labor costs
D) an increase in the number of firms
B
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For the purpose of GDP accounting, consumption expenditures include
A) only durable goods. B) only nondurable goods. C) both nondurable goods and services. D) durable goods, nondurable goods, and services.
The first table above gives the labor demand and labor supply schedules for a nation. The second table gives its production function
a. What are the equilibrium real wage rate and the level of employment? b. What is potential GDP?
An advantage of the proprietorship as a form of business organization is
A) its limited liability. B) its limited access to capital, thus reducing the possible size of debt. C) that it is easy to form. D) that it can sell bonds to the public.
At some rate of interest, i, domestic demand is equal to output, and at some exchange rate, the domestic return is equivalent to the foreign return. This must be one point on:
A) the IS curve. B) the aggregate expenditure line. C) the supply curve. D) the LM curve.