An increase in product price implies that
A) the firm's marginal factor cost will increase.
B) the wage rate the firm pays will increase.
C) the firm's demand for labor increases.
D) the firm's demand for labor decreases.
Answer: C
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With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6%. But if the rate of inflation was anticipated to be 4%, the bank would most likely charge the firm an annual interest rate of
A. 10%. B. 2%. C. 6%. D. 4%.
The bowed production possibilities curve represents: a. constant opportunity costs
b. decreasing opportunity costs. c. increasing opportunity costs. d. none of the above
Suppose Cassie's Candles is a profit-maximizing competitive firm. Cassie sells hand-made candles for $10 each. She will pay an hourly wage of $20 so long as the marginal productivity of a worker equals or exceeds two candles per hour
a. True b. False Indicate whether the statement is true or false
When the government deregulates a product or service, what happens to it?
(A) Some government regulations over the industry are eliminated. (B) Government control over the industry is stopped. (C) The product or service is available to more people. (D) The product or service becomes cheaper.