Along an upward-sloping labor supply curve, as the wage rate increases, the opportunity cost of leisure ________, causing individuals to supply a ________ quantity of labor
A) decreases; greater B) increases; greater
C) remains constant, constant D) increases; lower
B
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When marginal revenue equals price for all levels of output, the firm is operating in a perfectly competitive market
a. True b. False
In a market with barriers to entry:
A. the implications of Adam Smith's theory of the invisible hand can be expected to hold. B. prices will direct productive resources toward underserved markets. C. economic profit will not fall to zero in the long run. D. firms will earn zero economic profit in the long run.
International trade is possible in part through:
A) inefficiently employing resources. B) restricting the rate of growth of output. C) generalization in the production of all goods. D) specialization in the production of goods.
A policy mix of an expansionary fiscal policy and a contractionary monetary policy would cause
A) output to decrease and interest rates to decrease. B) output to decrease and interest rates to increase. C) output to decrease and interest rates to either increase, decrease, or remain unchanged. D) output to either increase, decrease, or remain unchanged and interest rates to increase.