According to the law of demand, other things being equal
A) when the price a good goes up, then people buy more of that good.
B) when the price a good goes up, then people buy less of that good.
C) when people's income goes up, then they buy more of a good.
D) when people's income goes up, then they buy less of a good.
B
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If carpentry positions A and B required identical skill levels, other things constant, which one of the following would most likely elevate the wage rate of position A relative to position B?
a. Position A offers steady employment, whereas employees holding position B are often laid off. b. Position A offers more sick leave and more paid holidays. c. The work place of position A is in the intense heat of the sun, whereas the work place of B is air-conditioned. d. Position A is a safe office job; position B requires the employee to operate a dangerous saw.
The total fixed cost curve:
A. varies with the quantity of inputs used. B. decreases with output. C. increases with output. D. remains constant regardless of output.
When aggregate production is less than aggregate expenditures,
A. the economy is in equilibrium. B. there are decreases in inventory. C. total output will decrease.
Collusion refers to a situation where rival firms decide to
A. agree with each other to set prices and output. B. cheat on each other. C. compete aggressively against each other. D. combine their operations and merge with each other.