Inflation leads to:
a. higher menu costs
b. an increase in the propensities to consume.
c. an increase in the potential gross domestic product.
d. an increase in the effectiveness of monetary policy.
c
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Why does a profit-maximizing firm hire labor up to the point where the value of marginal product equals the wage rate?
What will be an ideal response?
Implicit costs can be defined as
A) the non-monetary opportunity cost of using the firm's own resources. B) the deferred cost of production. C) total cost minus fixed costs. D) accounting profit minus explicit cost.
When the economy slows down the:
A. demand for workers increases. B. supply of workers increases. C. demand for workers decreases. D. supply of workers decreases.
In reaction to the passage of the Smoot-Hawley Tariff, Canada as well as many other U.S. trading partners
A) enacted large increases in tariffs on U.S. imports. B) eliminated tariffs on U.S. imports. C) refused to export any products to the United States. D) refused to import any products from the United States.