A decrease in the wage rate will change
A. the amount of labor employed, and it may also change the amount of other inputs employed.
B. the firm's profit-maximizing level output, but not its usage of inputs.
C. only the amount of labor hired.
D. the price the firm charges for the product, but it will not affect the demand for any of the inputs.
Answer: A
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A surplus occurs in a market when:
A) demand exceeds supply. B) price is lower than the equilibrium price. C) price is higher than the equilibrium price. D) the marginal cost of production is negligible.
Composites of stock prices
a. are completely random and unpredictable. b. fluctuate randomly around a rising trend. c. are destabilized by speculations. d. show no trend, but fluctuate widely.
Refer to the above figure. Suppose the economy is at point B and the central bank adopts contractionary monetary policy. In the short run, this will result in
A. the economy moving towards point A. B. the economy staying at point B. C. the economy moving towards point C. D. an outcome that cannot be predicted, because not enough information is given.
Learning by doing is represented by
A) a decrease in the average total cost curve. B) an increase in the average total cost curve. C) no change in the average total cost curve. D) an increase in the average total cost curve and a decrease in the marginal cost curve.