When aggregate planned expenditure exceeds real GDP, there are unplanned ________ in inventories, and firms ________ production, so that real GDP ________
A) increases; increase; increases
B) increases; decrease; decreases
C) decreases; decrease; decreases
D) decreases; decrease; increases
E) decreases; increase; increases
E
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An isoquant shows the various combinations of labor and capital that
a. the firm will choose to employ in the long run. b. yield the same total cost. c. can produce some fixed level of output. d. minimize the firm's average cost of production.
A tax that is imposed by the importing country when an imported good crosses its international boundary is called
A) an import quota. B) dumping. C) a voluntary export restraint. D) a tariff.
A monopsonist will hire labor up to the point where
a. the marginal expense of labor is minimized. b. the marginal physical productivity of labor is maximized. c. the marginal expense of labor is equal to marginal revenue. d. the marginal expense of labor is equal to the marginal value product of labor.
In a city with rent-controlled apartments, all of the following are true except
A) apartments usually rent for rates lower than the market rate. B) apartments are often in shorter supply than they would be without rent control. C) it usually takes more time to find an apartment than it would without rent control. D) landlords have an incentive to rent more apartments than they would without rent control.