If price increases by 10 percent and a firm is maximizing profits, output will
a. increase by 10 percent
b. decrease by 10 percent
c. remain unchanged
d. increase, but we don't know by how much
e. decrease, but we don't know by how much
D
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As a result of a war in the country of Omega, refugees flee to the country of Alpha to seek employment. Holding other factors constant, the influx of refugees will ________ the real wage in Alpha and ________ employment in Alpha.
A. decrease; decrease B. increase; increase C. increase; decrease D. decrease; increase
The slope of a budget constraint represents:
A) the price of the good measured along the horizontal axis. B) the price of the good measured along the vertical axis. C) the opportunity cost of one good in terms of another. D) the money income of the consumer.
If the government increases the income tax rate, consumers have:
A. less to spend and will reduce their consumption. B. more to spend and will reduce their consumption. C. less to spend and will increase their consumption. D. more to spend and will increase their consumption.
In a competitive market, the quantity of each good produced and the price at which it is sold are not determined by any single buyer or seller
a. True b. False Indicate whether the statement is true or false