In a perfectly competitive market, the horizontal sum of all the individual firms' supply curves is
a. zero.
b. equal to the industry profits.
c. the market supply curve.
d. a horizontal line.
c
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If there was an adverse technological shock which decreased the demand for labor, then
A) Imports would increase. B) GDP would increase. C) Imports would decrease. D) GDP would decrease.
An open market operation involves
A) the Federal Reserve's purchase or sale of securities. B) the Federal Reserve's issuance of new stock. C) changing federal income tax rates. D) raising the debt limit of the United States.
Suppose the market for autoworkers is initially in equilibrium, but then the automakers purchase capital goods that are a substitute for workers. What happens in the market for autoworkers?
A) The equilibrium wage rate will increase and the equilibrium quantity of labor will decrease. B) The equilibrium wage rate and the equilibrium quantity of labor will both increase. C) The equilibrium wage rate and the equilibrium quantity of labor will both decrease. D) The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.
Over the past 80 years, prices in the U.S. have risen on average about
a. 2 percent per year. b. 4 percent per year. c. 3.6 percent per year. d. 6 percent per year.