Economic theory simplifies relationships to explain how the relationships interact
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The real wage will rise if the nominal wage
A. increases more rapidly than the prices of the goods and services it buys. B. falls at the same rate as the general price level. C. falls more rapidly than the prices of the goods and services it buys. D. increases at the same rate as labor productivity.
At the level of output where marginal revenue equals marginal cost, price is less than average total cost but greater than average variable cost. In this instance, a profit-maximizing firm should: a. cease production as it is incurring an economic loss
b. continue operating at that output level in the short term, since total revenue will cover all of the firm's variable costs and some of its fixed costs. c. continue operating at that output level in the short term, since total revenue will cover all of the firm's fixed costs and a portion of its variable costs. d. decrease output to where marginal revenue exceeds marginal cost by the greatest dollar amount.
An example of expansionary fiscal policy is
A) increasing government expenditures. B) increasing taxes. C) decreasing government expenditures. D) decreasing taxes. E) a and d
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Two possible consumption bundles that Country A could produce are:
A. (5,000 bananas, 1,000 tomatoes) and (1,000 bananas, 5,000 tomatoes) B. (2,500 bananas, 500 tomatoes) and (1,250 bananas, 800 tomatoes) C. (5,000 bananas, 0 tomatoes) and (2,500 bananas, 500 tomatoes) D. (2,500 bananas, 750 tomatoes) and (1,250 bananas, 750 tomatoes)