An increase in aggregate demand when the economy is operating ________ is likely to result in an increase in the overall price level and ________ in output.
A. below full capacity; no increase
B. below full capacity; a decrease
C. at full capacity; no increase
D. at full capacity; a decrease
Answer: C
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The Acme Company is a perfect competitor in its input markets and a monopolist in its output market. The marginal product of labor is 20 and the price of Acme's output is $10. For Acme Company, the marginal revenue product of labor is
A) less than $10. B) $10. C) $20. D) less than $200. E) $200
Union membership peaked in the
A. mid-1930s. B. late-1950s. C. late-1970s. D. early 1980s.
Which of the following is most likely to be a major source of growth in per capita GDP?
A. a high investment / GDP ratio B. a high rate of inflation C. rapid population growth D. rapid growth in the money supply
Which of the following is the most efficient way to reduce pollution emissions?
a. Emission standards that cap allowable pollution. b. Government pollution charges or taxes. c. Legislated regulations limiting the quantity of emissions allowed by each firm. d. Enforcement of property rights, when those rights are well-defined and transaction costs are low.