What determines the correct level of input for labor in a firm?
a. Marginal resource cost is higher than marginal revenue product.
b. Marginal revenue product is expected to exceed the wage.
c. The average total cost of labor exceeds marginal revenue product.
d. Marginal resource cost exceeds average total cost of labor.
b. Marginal revenue product is expected to exceed the wage.
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The labor supply curve has a
A) positive slope always. B) negative slope if the income effect is greater than the substitution effect. C) positive slope if the income effect is greater than the substitution effect. D) negative slope always.
Increased government spending is an example of:
A. expansionary fiscal policy. B. contractionary fiscal policy. C. expansionary monetary policy. D. contractionary monetary policy.
The oligopoly model is the only model that explicitly considers how the pricing and output decisions of one firm affect other firms.
Answer the following statement true (T) or false (F)
Which of the following is not correct about the money kept in transactions accounts?
A. It is backed by gold held by the government. B. It is part of the basic money supply. C. It permits direct payment to a third party. D. It is a good substitute for cash in many cases.