The individual firm in a purely competitive labor market faces:
A. a perfectly elastic labor supply curve and a downsloping labor demand curve.
B. a perfectly elastic labor demand curve and an upsloping labor supply curve.
C. labor demand and labor supply curves both of which are perfectly elastic.
D. a downsloping labor demand curve and an upsloping labor supply curve.
Answer: A
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Suppose that consumers expect the price of a product to decrease in the future. The result is that
A) the current demand for the product increases. B) the current demand for the product decreases. C) the current supply of the product decreases. D) the current supply of the product increases.
According to the liquidity premium theory, a steep yield curve may be an indicator of
A) expectations of a significant increase in inflation. B) an upcoming recession. C) an economic slowdown. D) lower future short-term interest rates.
By definition, M1 includes:
a. savings accounts. b. money market mutual accounts. c. small denomination time deposits. d. checkable deposits.
A tax levied on each unit of pollution is
A. an income tax. B. a emissions fee. C. a flat tax. D. an international tax.