As applied to labor demand, the marginal approach to profit
a. is irrelevant
b. requires setting marginal cost equal to the wage rate
c. requires setting marginal revenue equal to the wage rate
d. says that a firm should increase employment if doing so adds more to revenue than it adds to cost
e. says that a firm should decrease employment if doing so adds more to cost than it adds to revenue
D
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Unplanned inventories increase when
A) aggregate planned expenditure is less than GDP. B) actual aggregate expenditure is greater than aggregate planned expenditure. C) actual aggregate expenditure is equal to GDP. D) actual aggregate expenditure is less than GDP. E) real GDP is less than aggregate planned expenditure.
When the interest rate is above the equilibrium interest rate there is an
A) excess quantity of money and people will sell bonds. B) excess demand for money and people will sell bonds. C) excess quantity of money and people will buy bonds. D) excess demand for money and people will buy bonds.
Which of the following is NOT present in a perfectly competitive market?
A) profit maximizing firms B) an economic profit in the long run C) price taking behavior D) identical products
Refer to the Article Summary. Assume that more foreign governments and hospitals begin to offer and publicize their medical services to American medical tourists and, due to the growing number of aging baby boomers, more Americans desire hip-
replacement surgery. All else equal, what will happen in the market for hip-replacement surgery as a result of these two factors? A) Demand will increase, but these two factors will not shift the supply curve. B) Demand and supply will both increase. C) Demand will increase and supply will decrease. D) Supply will increase, but these two factors will not shift the demand curve.