An increase in taxes on labor income shifts the labor supply curve ________, and the ________
A) leftward; after-tax wage rate falls
B) rightward; before-tax wage rate rises
C) leftward; before-tax wage rate does not change
D) leftward; after-tax wage rate rises
E) leftward; after-tax wage rate does not change
A
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Suppose a single-input production function has initially increasing but eventually decreasing marginal product. In this case, the first order condition for the profit maximization problem
A. is necessary for identifying the profit maximizing production plan. B. is sufficient for identifying the profit maximizing production plan. C. is both necessary and sufficient for identifying the profit maximizing production plan. D. is neither necessary nor sufficient for identifying the profit maximizing production plan.
The transmission mechanism in an economy alters: a. nominal gross domestic product through changes in the interest rate. b. real gross domestic product through changes in the interest rate
c. real gross domestic product through changes in the price level. d. nominal gross domestic product through changes in the price level.
Real GDP is a better gauge of economic well-being than is nominal GDP
a. True b. False Indicate whether the statement is true or false
In the short run, a competitive firm will not produce unless price is equal to average total costs.
Answer the following statement true (T) or false (F)