If the price level in the current period is higher than what buyers and sellers anticipated,
What will be an ideal response?
profit margins will be attractive and firms will expand output.
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The idea of comparable worth implies that wages are to be determined by the job characteristics and not merely by the interaction of demand and supply
a. True b. False Indicate whether the statement is true or false
Capitalism gets its name from the fact that capital resources are mostly:
A. Owned by the state or government B. Given the highest priority in the economy's income distribution C. Treated as private property D. In the form of money and financial resources
A firm hires labor, capital, and land to produce grapefruits. Currently the marginal product of the last unit of labor input is 40, the marginal product of the last unit of capital input is 60, and the marginal product of the last unit of land input is 200. The market wage is $20 and the market price for capital is $30. If the firm is using the optimal combination of inputs, then the price of land is
A. $4. B. $40. C. $100. D. indeterminate from the given information.
Refer to the graph. If a financial asset's average expected rate of return and beta put it at point F:
A. arbitrage will push down the price of the asset and lower the average expected rate of
return to Y.
B. arbitrage will push up the price of the asset and lower the average expected rate of return to Y.
C. a restrictive monetary policy is needed to move the asset onto the Security Market Line.
D. an expansionary monetary policy is needed to move the asset onto the Security Market
Line.