Changes in the demand for an industry's output are felt most by those factors that
a. are inelastically supplied.
b. are paid the highest factor prices.
c. earn relatively little economic rent.
d. have a sizable number of alternative uses.
a. are inelastically supplied.
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Which of the following statements would be true of an economy that can be characterized as being to the left of the IS curve?
A) There is an excess demand for commodities at the existing interest rate. B) There will be a tendency for the level of output to decrease. C) There is an excess supply of commodities at the existing interest rate. D) There will be a tendency for interest rates to fall.
For a firm in a perfectly competitive market, if it is producing at a level of output where marginal costs are less than marginal revenue it:
A. should cut back production to increase profits. B. should increase production to increase profits. C. is producing a profit-maximizing quantity. D. should invest more in advertising in order to raise revenues.
If MRP > MLC, the firm
a. is employing the optimal quantity of labor b. should decrease the quantity of labor it employs c. should lower the wage rate d. should increase the quantity of labor it employs e. should raise the wage rate
Refer to the information provided in Table 23.7 below to answer the question(s) that follow. Table 23.7
Refer to Table 23.7. At an aggregate output level of $600 billion, the unplanned inventory change is
A. -$100 billion. B. -$50 billion. C. $0. D. $50 billion.