You own a business that answers telephone calls for physicians after their offices close. You have an incentive to substitute capital for labor if the
A. price of labor decreases.
B. marginal product of labor increases.
C. price of capital decreases.
D. price of capital increases.
Answer: C
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In a perfectly competitive market, if P < MC, then
A. too much output is being produced. B. production is efficient, as the firm is earning profits. C. the firm is paying a price for resources that is too high. D. too little output is being produced.
The short-run shutdown price for a perfectly competitive firm is where price equals
A. MR. B. minimum ATC. C. AR. D. minimum AVC.
Refer to the information provided in Figure 25.1 below to answer the question(s) that follow.
Figure 25.1Refer to Figure 25.1. The money demand curve will shift from 
to 
if
A. the price level increases. B. interest rates rise. C. interest rates fall. D. nominal income decreases.
Describe the characteristics of fiscal policy in the Great Recession. Was it expansionary or contraction?
What will be an ideal response?