If actual experience supports two competing theories, then both theories are proven to be true
Indicate whether the statement is true or false
False. Neither theory can be rejected but if they are competing, then the test is inconclusive.
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The monopsonist will employ labor to the point at which the
A) marginal factor cost equals the marginal revenue product of labor. B) marginal revenue product equals the wage rate. C) marginal cost of output equals the marginal revenue. D) demand equals the supply of labor.
Economists call an institution designed to oversee the banking system and regulate the quantity of money in the economy
a. a central bank. b. a charter bank. c. a national bank. d. a state bank.
Suppose the following situation exists for an economy: Kt+1/N < Kt/N. Given this information, we know that
A) saving per worker equals depreciation per worker in period t. B) consumption per worker will tend to fall as the economy adjusts to this situation. C) saving per worker is greater than depreciation per worker in period t. D) the saving rate increased in period t. E) none of the above
When the price of tea decreases 7%, quantity demanded increases 12%. The price elasticity of demand for tea is ________ and total revenue from tea sales will ________.
A. inelastic; decrease B. inelastic; increase C. elastic; decrease D. elastic; increase