If an increase in income leads to a decrease in the demand for salami, then salami is
A) a necessity.
B) a neutral good.
C) a normal good.
D) an inferior good.
D
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Firms that survive in the long run are usually those that
A) become as large as possible. B) remain small. C) use more capital rather than more labor. D) earn the largest possible profit.
The United States has had a long history of work time lost due to worker strikes. This trend has
A. increased over time. B. decreased over time. C. stayed relatively constant during the past century. D. been less of a problem compared to other countries such as Japan.
If the real marginal tax rate increases in the market clearing model then:
a. the supply of labor decreases. b. real output, Y, declines. c. the demand for capital decreases. d. all of the above.
Refer to Figure 12-2. Why is the total revenue curve a ray from the origin?
A) because the firm can sell its product at a constant price B) because revenue increases at a decreasing rate C) because the firm must lower its price to sell more D) because revenue increases at an increasing rate