Which of the following describes the market for capital?
a. Supply is not affected by changes in price.
b. Demand is not influenced by price changes.
c. The market is subject to the laws of supply and demand.
d. Price is not affected by supply or demand.
c. The market is subject to the laws of supply and demand.
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When the supply curve is flat, a tariff on imported goods
a. always increases the welfare of Americans. b. always decreases the welfare of American.. c. has no effect on the welfare of Americans. d. only affects the welfare of Americans if the goods are also made domestically .
The discount rate refers to the interest rate on
A) primary credit. B) secondary credit. C) seasonal credit. D) federal funds.
In a perfectly competitive market, when the price is below the minimum average total cost for all firms:
A. accounting profits will be positive. B. firms will likely enter the market. C. the price will eventually rise once enough firms have left the market. D. economic profits will be equal to zero.
The marginal product of labor is the:
A. change in labor necessary to produce an additional unit of output. B. cost of additional labor necessary to produce an additional unit of output. C. change in output resulting from adding an additional unit of labor. D. change in revenue resulting from adding an additional unit of labor.