Unexpected inflation harms both debtors and individuals who live on fixed incomes
a. True
b. False
Indicate whether the statement is true or false
False
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A firm has the production function 
. The wage rate is $10 per unit of labor and the rental rate is $5 per unit of capital and the firm is going to spend $1000 on production.
i. Assuming that the firm is free to choose any level of K and L to emply, how much of each should it emply? How much output will they produce? ii. Now assume that once the firm has chosen its level of L and K, the level of K becomes fixed. If the price of K increases to $8 per unit, how many units of output can the firm now produce if it spends the same amount? iii. Once the firm reaches the long run again and is able to vary its level of K, how much should L and K should it employ in order to achieve its original level of output? How much will that level of production cost?
________ is the study of how individuals, households, governments, and firms make choices and how those choices affect prices, the allocation of resources, and the well-being of other agents
A) Macroeconomics B) Monetary economics C) Microeconomics D) Growth theory
Interdependence of firms is most common in
A) oligopolistic industries. B) monopolistically competitive industries. C) monopolistically competitive and oligopolistic industries. D) monopolistic industries.
Does the law of supply apply to labor markets?
A. No, because the laws of supply and demand both apply only to product markets. B. Yes, because all workers will increase the number of hours they work if their wages increase. C. Yes, because some workers who are less committed to the labor force will decide to work if wages increase. D. No, because workers have no control over the number of hours they work.