Advertising
a. provides information about products, including prices and seller locations.
b. has been proven to increase competition and reduce prices compared to markets without advertising.
c. signals quality to consumers, because advertising is expensive.
d. All of the above are correct.
d
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Refer to the figure above. What is the equilibrium wage rate and employment level after the labor demand curve shifts to LD2?
A) $50 and 50 units of labor B) $40 and 30 units of labor C) $20 and 40 units of labor D) $10 and 60 units of labor
Beginning from a position of long-run equilibrium, suppose there is an increase in the aggregate demand curve. After adjustment and comparing the economy's new long-run equilibrium with its original long-run position, the result would be an increase in: a. real GDP
b. the price level (CPI). c. the unemployment rate. d. a and b, but not c.
The consumer confidence index can be defined as:
a. an economic index that measures how consumers feel about their government. b. an economic index that measures how confident companies are about keeping their current consumers. c. an economic index that measures household expectations about the economy. d. an economic index that measures how investors feel about their investments in the stock market. e. an economic index used to measure consumers' confidence on a particular brand.
A firm hires some number of custodians to clean a large warehouse. When only a few custodians are hired, they can quickly find and remove a lot of dust and debris. As the number of custodians increases, additional custodians have to go to greater
lengths and spend more time to find and remove additional dust and debris. What property of production functions is relevant to the custodians' situation?