When aggregate demand declines, some firms may reduce employment rather than wages because wage reductions may:

A. not be possible due to the minimum wage law.
B. increase the cost of raising money capital.
C. reduce the demands for their products.
D. set off a price war.


A. not be possible due to the minimum wage law.

Economics

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Would each of the following groups be happy or unhappy if the Mexican peso appreciates against the U.S. dollar? Answer the question for each of the following:

(a) The U.S. pension funds holding Mexican government bonds (b) U.S. tourists planning a trip to Mexico (c) Mexican exporting manufacturers (d) A Mexican firm trying to buy properties overseas

Economics

Refer to the above graph, which shows the market for beef where demand shifted from D 1 and D 2. The change in equilibrium from E1 to E 2 is most likely to result from:

a. A decrease in consumer incomes b. An increase in the price of pork c. A decrease in the tax on beef products d. An increase in the cost of cattle feed

Economics

For the cost function C(Q) = 75 + 4Q + 2Q2, the marginal cost of producing 5 units of output is:

A. 4. B. 20. C. 54. D. 24.

Economics