A good way to view macroeconomic equilibrium is:
a. Water at rest in a tub.
b. Two opposing forces, like water flowing into and out of a tub but the level remaining constant.
c. A state of complete rest, where an economy comes to a complete halt for a brief period.
d. A state of rapid change, but one where the adjustment from one level to another is so quick that the shifts are seamless to most observers.
e. Where the supply and demand for economic activity equals the supply and demand for political activity.
.B
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If a firm's marginal product of labor is less than its average product of labor, then an increase in the quantity of labor it employs definitely will
A) decrease its total product. B) decrease its average product of labor. C) increase its marginal product of labor. D) not change its average product of labor.
The impact of an increase in oil prices stemming from the growth of demand is probably going to ____ the wages of petroleum engineers
a. decrease b. increase c. leave unaffected d. be impossible to predict
A markup of price over marginal cost is inconsistent with free entry and zero profit
a. True b. False Indicate whether the statement is true or false
If a perfectly competitive firm can sell each unit of output for $9, and the marginal cost of the last unit produced is $8.50, then the:
A. firm should lower its output level in order to increase profits. B. firm is earning an average profit of $0.50. C. extra benefit of the last unit produced is greater than the extra cost. D. extra benefit of the last unit produced is less than the extra cost.