Which of the following goods should be clearly considered substitutes?
A. Peanut butter and jelly
B. Right and left shoes
C. Coke and Pepsi
D. Gasoline and diesel fuel
Answer: C
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When average variable cost is at its minimum level, marginal product _________
A. equals average product B. exceeds average product C. is less than average product D. is at its maximum level
If the federal budget goes from a budget deficit in Year 1 to a budget surplus in Year 2, does it follow that the federal government acted to raise taxes or cut government spending in Year 2?
What will be an ideal response?
To explain the existence of excess capacity, Keynes argued that
A) prices and wages are flexible, and eventually markets would go back to equilibrium. B) the long run average cost curve should not occur at the full employment level. C) the aggregate demand curve can be manipulated by advertising. D) prices and wages are inflexible in the downward direction.
The labor demand curve slopes downward because
a. firms wish to hire fewer workers as the wage rate increases b. households wish to hire fewer workers as the wage rate decreases c. firms wish to hire more workers as the wage rate increases d. firms wish to supply fewer workers as the wage rate increases e. households wish to provide fewer hours of work as the wage rate decreases