Individuals have a tradeoff between leisure and work. When income from working is taxed, the cost of leisure is reduced in relative terms
a. True
b. False
Indicate whether the statement is true or false
False
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Profits can be maximized by equating MR = MC = Price
A) only in perfectly competitive markets. B) only in monopoly markets. C) only in discriminating monopoly markets. D) only with government price controls.
Efficient markets theory suggests that purchasing the published reports of financial analysts
A) is likely to increase one's returns by an average of 5 percent. B) is likely to increase one's returns by an average of about 3 to 5 percent. C) is not likely to increase financial returns. D) will increase financial returns in the first year but not in following years.
In the short run, with predetermined prices, when output is less than planned aggregate expenditure:
A. planned investment is less than actual investment. B. potential output is less than short run equilibrium output. C. planned investment is greater than actual investment. D. potential output is greater than short run equilibrium output.
The equilibrium wage rate in an industry is found by
A) the intersection of the market demand curve for labor and the marginal revenue product curve of labor. B) the intersection of the firm's demand curve for labor and the firm's supply curve of labor. C) the intersection of the market demand curve for labor and the market supply curve of labor. D) negotiations between the union leadership and the managers of the firms.