When an economy is experiencing an economic boom and operating beyond its long-run capacity,
a. strong demand for investment funds will push interest rates upward.
b. weak demand for resources will push the prices of resources downward.
c. weak demand for investment funds will cause the real interest rate to decline.
d. the unemployment rate will be greater than its natural rate.
A
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If the MPP of labor is 60 and the price of labor per period is $20, the MPP of machinery is 75, and the price of the machinery per period is $25, in order to achieve optimal input proportions, the firm should use
A. more labor and less machinery. B. more machinery and less labor. C. more labor with the same amount of machinery. D. the current combination.
Hoe does etiquette help in transaction of goods between two parties?
Which of the following has resulted from the rise in the participation of women in the labor force?
a. More men lost jobs in the long run b. Youth crime increased significantly c. Households produced less for themselves and demanded more from the market d. More families moved to rural areas
Microeconomists usually assume that people are motivated by
A. selfishness. B. material self-interest. C. altruism. D. property rights.