A trade deficit occurs when:
A. government revenue exceeds government spending.
B. exports exceed imports.
C. exports are less than imports.
D. government spending exceeds government revenue.
Answer: C
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In the long run, a perfectly competitive firm will produce:
a. in the upward-sloping portion of its LRAC curve. b. where P = minimum AVC. c. in the downward-sloping portion of its LRAC curve. d. where P is greater than minimum ATC. e. where P = minimum ATC.
Labor unions: a. have no influence over wages
b. can influence wages by restricting labor supply. c. are illegal in the United States. d. have significantly increased their membership in the last two decades.
Which of the following events could increase the demand for labor?
a. A decrease in output price b. A decrease in the amount of capital available for workers to use c. An increase in the marginal productivity of workers d. A decrease in the wage paid to workers
Recall the Application about the incentives to install rooftop solar panels to answer the following question(s).According to the Application, a 10 percent increase in the tax credits for solar panels results in an increase in the number of households that install solar panels by 7.6 percent. The increase in sales due to this subsidy is an example of which element of the economic way of thinking?
A. responding to incentives B. isolating variables C. thinking at the margin D. using assumptions to simplify