Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00. What is the market value of production in this economy?
A. $1.20
B. $5.00
C. $7.00
D. $2.00
Answer: C
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For a firm in the long-run, an increase in the market wage rate will cause it to reduce the employment of labor. With fewer workers, the firm's marginal revenue product for capital
a. shifts downward leading the firm to use less capital. b. shifts upward leading the firm to use more capital. c. twists so that is becomes more elastic d. is not affected.
The Wilshire 5000 stock index is made up of the stocks of 5,000 of the largest U.S. companies.
Answer the following statement true (T) or false (F)
You have received your advanced degree in biochemistry with a specialty in recombinant DNA technology. Your colleagues wish to form a partnership to research adenovirus vectors
Your legal counsel advises you on the following aspects of a partnership, yet you tell her, based on your knowledge of economics, that you think one of the following points is INCORRECT. A) An advantage of the partnership would be that it is relatively easy to form, almost as easy as forming a proprietorship. B) The income of the partnership is treated as personal income and is subject only to personal taxation rates. C) The personal assets of each partner should be safe and would not necessarily be at risk due to claims by financial institutions. D) Partnerships often help reduce the costs of monitoring job performance in situations in which it is difficult to measure objectively.
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.