All else constant, the choice of whether to use a labor-intensive production process or a capital-intensive one is depends on:
A) the absolute prices of capital and labor.
B) the relative prices of capital labor.
C) the type of market in which the firm operates.
D) whether the economy is growing or shrinking.
B
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If the economy were experiencing a recession, which of the following would Keynes be in favor of?
A. Households should save less and consume more goods and services. B. The government should increase taxes to balance its budget during a recession. C. Businesses should decrease spending on new equipment until the economy improves. D. The government should discourage companies from exporting goods to foreign countries while people at home are unable to buy basic necessities.
The figure above shows the demand and cost curves for a single-price monopoly. What level of output maximizes the firm's economic profit?
A) 0 units B) 20 units C) 30 units D) 50 units
A $500 increase in government spending contains more fiscal stimulus than a $500 tax cut.
Answer the following statement true (T) or false (F)
Why would a member of a cartel cheat?
What will be an ideal response?