The price elasticity of supply is
A. positive.
B. negative.
C. zero.
D. unknown, depending on other factors.
Answer: A
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A worker has a marginal product of 15 units a day, each of which can be sold for $10. Is it profitable to hire this worker if the wage rate is $100 a day? Briefly explain your answer
What will be an ideal response?
The U.S. Treasury is responsible for controlling the money supply and interest rates in the economy
Indicate whether the statement is true or false
A 45-degree line on a graph with expenditures, E, on the vertical axis and production, Y, on the horizontal axis, represents
A) the line of disequilibrium levels of income. B) all possible equilibrium levels of production and expenditures. C) some of the equilibrium levels of production and expenditures. D) None of the above.
When Keynesian equilibrium is present,
a. aggregate demand for goods and services will equal the current rate of output. b. business inventories will be increasing. c. full employment must be present. d. the actual rate of unemployment must equal the natural rate of unemployment.