The quantity of RGDP supplied will decrease in both the short run and long run when the price level falls
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following describes an individual’s labor supply curve when the desire for more wage-related income is stronger than the desire for more free time?
a. U-shaped b. backward bending c. upward sloping d. downward sloping
Consider a market consisting of two firms where the inverse demand curve is given by P = 500 ? 2(Q1 + Q2). If the Stackelberg leader's and follower's marginal costs are zero, the leader's marginal revenue is:
A. MR(QL, QF) = 125 ? QL + 0.5QF. B. MR(QF) = 250 ? 2QF. C. MR(QL) = 250 ? 2QL. D. MR(QL, QF) = 125 ? 0.5QL + QF.
Firms will continue to increase their purchase of factor inputs as long as ________
A) the marginal product of a given factor is greater than its real factor price B) the marginal cost of a given factor is lower than its marginal product C) their total revenues are greater than their total costs D) all of the above E) none of the above
Consider an apple orchard owner deciding how to incentivize his fruit pickers. He pays per pound harvested but adjusts the compensation rate higher during poor harvest seasons. As a consequence
a. The compensation rate should be fixed at all times b. The pickers might try to game the system by discouraging others from harvesting too much c. The pickers would claim good harvests in order to be paid higher piece rates even during poor harvest seasons d. None of the above