If land and capital are complementary resources and the price of land goes down, the employment of capital ______.
Fill in the blank(s) with the appropriate word(s).
rises
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How does value of marginal product (VMP) of labor determine the number of workers a competitive firm will hire?
Which of the following would move the economy up and to the left along a short run Phillips Curve? a. Increases in the discount rate and increases in the interest rate the Fed pays on bank reserves
b. Increases in taxes by the federal government combined with reductions in government purchases of goods and services. c. Decreases in the fed funds interest rate target adopted by the Fed. d. An increase in the expected rate of inflation.
When the government makes a firm the exclusive legal provider of a good or service, it grants the firm
A) a copyright. B) a network externality. C) a quota. D) a public franchise.
In the figure above, when income equals $20,000, what does consumption equal?
A) $0 B) $10,000 C) $20,000 D) impossible to tell