Answer the following statement(s) true (T) or false (F)
1. The total revenue curve for a perfectly competitive firm will be a straight line with positive slope.
2. The marginal revenue curve for a perfectly competitive firm will be downward sloping.
3. Marginal costs reflect changes in variable costs.
4. The short-run is a period of less than one year.
5. The production decision is a short-run decision.
1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. TRUE
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Which of the following shifts the short-run supply curve to the right?
A. An increase in the price level B. An increase in the minimum wages C. A decrease in the price of oil D. All of these responses are correct.
A study by Price Fishback and Shawn Kantor of the University of Arizona shows that after the passage of workers' compensation laws, wages received by workers in the coal and lumber industries fell
Source: Price V. Fishback and Shawn Everett Kantor, "Did Workers Pay for the Passage of Workers' Compensation Laws?" Quarterly Journal of Economics, Vol. 100, No. 3, August 1995
The ability to shift a tax burden depends on the relative elasticities of demand and supply for the taxed commodity
a. True b. False Indicate whether the statement is true or false
In the simple Keynesian model, there are three simplifying assumptions. Among these assumptions is:
A) the price level is flexible B) no foreign sector C) the price level is constant until the economy reaches its full-employment level D) the money supply always rises E) b and c