If the price of a competitive firm's output increases, the firm responds in the short run by demanding more labor
What will be an ideal response?
True. The firm wishes to sell more output and can do so only by hiring more labor.
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The imperfect capital market justification for infant industry promotion
A) assumes that new industries will tend to have low profits. B) assumes that infant industries will soon mature. C) assumes that infant industries will be in products of comparative advantage. D) assumes that banks can allocate resources efficiently. E) assumes that developing country will reward the donor country.
Keynesians would recommend
A. Lower government expenditures when there is a shortfall in aggregate demand. B. Lower taxes when there is excess aggregate demand. C. Higher taxes when there is excess aggregate demand. D. Reliance on the market rather than the government for adjustment when an undesirable level of aggregate demand occurs.
To reduce the political influence on the Board of Governors,
A) the president of the United States appoints a new board every four years. B) the reelection campaign for each member is less than one year C) each member is appointed for 7 years, with one term expiring every year. D) each member is appointed for 14 years, with one term expiring every two years.
The Department of Justice has challenged the merger of two firms, and the case has ended up in the Supreme Court. The two firms argue that they will not use their monopoly power to raise prices or to cut output. Under what judicial standard would their merger be allowed, and under what judicial standard would their merger be disallowed?
What will be an ideal response?