If wages for a certain type of labor were higher in one market than in another, then
A) the differential would exist into the long run.
B) labor would move from the high wage market to the low wage market until wages were equal.
C) labor would move from the low wage market to the high wage market until wages were equal.
D) firms would not be acting as profit maximizers.
C
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What takes place in the indirect finance market?
A) Corporate and government bonds are sold to savers. B) Government purchases of buildings and equipment are sold to the highest bidder. C) Part ownership of corporations is sold in the form of stocks. D) Deposits of savers are accepted and lent to borrowers.
A firm sells 1000 units per week. It charges $70 per unit, the average variable costs are $25, and the average costs are $65 . In the long run, the firm should
a. Shut down since price is greater than average cost b. Continue operating price is higher than average cost, its making a profit c. Continue operating as the firm is covering all the variable costs and some of the fixed costs d. Shut-down because it is cost effective to pay off the remaining fixed costs
Total changes in GDP over time are:
A. bigger than the annual growth rate due to compounding. B. smaller than the annual growth rate due to compounding. C. smaller than the annual growth rate due to backsliding. D. bigger than the annual growth rate due to population growth.
If a product is manufactured under conditions of constant cost, an increase in the demand for the product will increase
a. both equilibrium quantity and equilibrium price in the long run. b. equilibrium price, but equilibrium quantity will be unchanged in the long run. c. equilibrium price but reduce equilibrium quantity in the long run. d. equilibrium quantity, but equilibrium price will be unchanged in the long run.