The substitution effect of a change in wage rate on a firm's demand for labor input will be more significant
a. the greater the change in output.
b. the more sharply curved are the firm's isoquants.
c. the flatter are the firm's isoquants.
d. the larger the quantity of labor employed.
b
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When a country exports a good because the world price is higher than the no-trade domestic price, domestic purchases of the good ________ and domestic production of the good ________
A) do not change; increases B) increase; increases C) decrease; increases D) decrease; decreases E) increase; decreases
A perfectly competitive market is characterized by
A) high barriers to entry. B) firms that are price setters. C) firms facing a downward sloping demand curve. D) no restrictions on entry into the market.
A decrease in the money supply:
a. lowers the interest rate, causing a decrease in investment and a decrease in GDP. b. lowers the interest rate, causing a decrease in investment and an increase in GDP. c. raises the interest rate, causing an increase in investment and a decrease in GDP. d. raises the interest rate, causing an increase in investment and an increase in GDP. e. raises the interest rate, causing a decrease in investment and a decrease in GDP.
A positive economic statement concerns
a. an opinion on an economic issue that should be taken b. an economic activity that has a positive effect on the economy c. a statement of fact d. a macroeconomic issue or position e. a microeconomic issue or position