If laborers become more efficient over time, and if the Ajax Company would want to expand production, they would
A) substitute capital for labor.
B) hire more laborers.
C) hire fewer laborers.
D) produce less product.
B
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Higher marginal propensities to consume and invest will make the slope of the aggregate expenditure function steeper
Indicate whether the statement is true or false
Refer to Figure 2-9. The opportunity cost of obtaining 10 additional toasters by moving from point B to point A is
a. 10 toothbrushes. b. 20 toothbrushes. c. 30 toothbrushes. d. zero, since the economy has the additional resources to produce 10 additional toasters.
Contrary to behavior that would be required to eliminate output gaps, many firms in the economy:
A. adjust their prices only periodically. B. only change the amount of output they produce in the long run, not in the short run. C. intentionally set prices below equilibrium prices in order to create shortages. D. have fully-flexible prices that change constantly.
A price discriminating firm will tend to charge a ________ price for the category of customer with the ________ elasticity of demand
A) higher; higher B) higher; lower C) lower; lower D) 100 percent markup; infinite