The upward slope of the supply curve reflects the
A. principle of specialization in production.
B. fact that price and quantity supplied are inversely related.
C. law of increasing substitution.
D. principle of diminishing marginal productivity
Answer: D
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Let C = 800 + 0.6y and I = 100. Assume no government or foreign sectors. If investment decreases by 40, the equilibrium output decreases by a total of
A) 800. B) 480. C) 100. D) 25.
The Federal Reserve is the nation's central bank. Therefore, does it provide banking services to individual citizens?
What will be an ideal response?
A perfectly competitive firm will be operating at its shutdown point if it operates
A. where P = MC. B. at the minimum point on its average variable cost curve. C. at the minimum point on its marginal cost curve. D. at the minimum point on its average total cost curve.
Efficiency wages paid to workers:
A) equal the lowest pay that workers would accept. B) are wages above the lowest pay that workers would accept. C) equal the marginal revenue product of the workers. D) are wages adjusted for changes in the price level.