Due to inflation, nominal prices are usually
A) equal to real prices.
B) smaller than real prices.
C) larger than real prices.
D) a constant proportion different from real prices.
C
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If firms are producing at a profit-maximizing level of output where the price exceeds the average total cost:
A. accounting profits must be negative. B. economic profits must be zero. C. other firms will enter the market. D. firms will exit the market.
One of the differences between microeconomics and macroeconomics is the use of fiscal policy. Fiscal policy is conducted by:
a. local banks. b. a nation’s central bank. c. a nation’s legislative body. d. a state’s legislative body.
Price controls often hurt those they are trying to help
a. True b. False Indicate whether the statement is true or false
The market supply curve for labor curve is upward-sloping because
A. As the wage rises, most workers want to work fewer hours. B. For most workers, as the wage rises, the preference for leisure time increases. C. As the wage rises, most workers are willing to work more hours. D. As the wage falls, most workers want to work more hours.