An economy that self-corrects a recessionary gap will experience falling nominal wages, rising real wages, and falling output
a. True
b. False
Indicate whether the statement is true or false
False
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Equilibrium in a market is
A. a situation in which there are no inherent forces that produce change. B. the natural state of affairs in the market. C. the actual price and quantity that will exist in a market. D. the best price and quantity that can exist in a market. E. All of these responses are correct.
There are 10 identical internet service providers (ISPs) in a city serving a market demand with an elasticity of -1.5. The elasticity of supply for each firm is 3.0. The elasticity of demand faced by an individual ISP is
A) -42. B) -15. C) -1.5. D) -27.
The slope of the total production curve becomes:
A. steeper when marginal product increases, typically at low levels of input. B. flatter when marginal product increases, typically at high levels of input. C. steeper when marginal product decreases, typically at high levels of input. D. flatter when marginal product decreases, typically at low levels of input.
Which of the following is true?
a. Markets determine what goods are going to be produced, but not the distribution of output among members of society. b. Markets determine the distribution of output among members of society, but not what goods are going to be produced. c. Markets determine both what goods are going to be produced and the distribution of output among members of society. d. Government can redistribute income without changing what will be produced in a society.