Answer the following statement(s) true (T) or false (F)
1. When the law of supply holds, an increase in the price of a product will cause producers to increase the quantity they wish to sell.
2. A rise in supply is illustrated by a rightward shift in the supply curve.
3. The supply curve for a commodity will shift downward when an excise tax is imposed.
4. An increase in the price of wheat will cause a rise in the supply of wheat.
5. When the actual market price is below its equilibrium level, suppliers are satisfied but demanders are not.
1. True
2. True
3. True
4. False
5. True
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The probability that an employed worker will lose his or her job in the next month is known as
A) the unemployment rate. B) the job finding rate. C) the underemployment rate. D) the job loss rate.
Sticky prices are a direct result of the kinked demand curve
a. True b. False Indicate whether the statement is true or false
Expenses that a firm does NOT have to pay out of pocket are
A. taxes. B. wages of employees. C. explicit costs. D. implicit costs.
If a company is earning a rate of return less than the return necessary for the business to continue operations in the long run, then
A. the firm is suffering an economic loss. B. total revenue exceeds total costs. C. the firm's normal rate of return is zero. D. total costs are less than a normal rate of return.