In the short run, the competitive firm will hire more labor if
A) the wage rate increases.
B) the price the firm receives for the output increases.
C) the price the firm receives for the output decreases.
D) a specific tax is imposed on the output.
B
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We expect that in the long run, exchange rate movements will largely reflect inflation differentials
Indicate whether the statement is true or false
Price elasticity of demand depends on all of the following except:
A. the amount of time a consumer has to adjust to price changes. B. the sensitivity of firms' output to changes in the product's price. C. the consumer's income. D. the availability and closeness of substitutes.
Table 16.1Given the data in Table 16.1, if Firm A were to reduce pollution from 1,000 gallons of wastewater per day to 0 gallons per day, production costs:
A. would increase by $12. B. would decrease by $12. C. would not change. D. cannot be calculated from the information given.
In economic terminology, a free rider is someone who:
A. does not pay for his or her own consumption of a public good. B. is earning economic profit. C. chooses not to consume a public good. D. raises his or her prices because all other prices are rising.