The wealth effect explains the:
A. downward-sloping aggregate demand curve.
B. upward-sloping aggregate demand curve.
C. downward-sloping aggregate supply curve.
D. upward-sloping aggregate supply curve.
A. downward-sloping aggregate demand curve.
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Assume a perfectly competitive firm's short-run cost is TC = 100 + 160Q + 3Q2. If the market price is $196, what should it do?
A) produce 5 units and continue operating B) produce 6 units and continue operating C) produce zero units (i.e., shut down) D) Cannot be determined from the above information
The marginal product of labor is the
a. value marginal product of labor multiplied by the price of the good produced. b. total output of labor divided by the quantity of labor used. c. additional output resulting from employing one additional unit of labor. d. same as the marginal revenue product of labor in price-taker markets.
An increase in Swiss interest rates will cause:
A. an increase in the demand for U.S. dollars and an increase in the exchange rate of Swiss francs per dollar. B. a decrease in the demand for U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. C. an increase in the supply of U.S. dollars and a decrease in the exchange rate of Swiss francs per dollar. D. a decrease in the supply of U.S. dollars and an increase in the exchange rate of Swiss francs per dollar.
Some argue that U.S. workers cannot compete with cheap labor from many developing nations. This
A. is true and it is has been found that tariffs in these cases can save thousands of jobs and benefit the economy. B. is true and is a justification for tariffs to protect domestic jobs. C. is true but the benefits of free trade are still such that tariffs should not be placed on these industries. D. is not true, as evidenced by the fact that the United States carries on a lot of trade with countries that have lower wages.