A wheat farmer and a firm in a perfectly competitive market are similar in that
A) both will earn an economic profit if their total revenue equals their total cost.
B) both face vertical demand curves.
C) both have to lower their prices if a rival firm lowers its price.
D) both face horizontal demand curves.
D
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Which of the following statements is true?
A) A higher wage can raise profits if productivity is directly proportional to wages. B) A higher wage can reduce the quantity supplied of labor. C) A higher wage can increase the quantity demanded of labor. D) A higher wage can raise profits if productivity of workers is fixed.
Which of the following equations describes government saving?
A) T - TR - INT - G B) T - TR - INT + G C) T - TR + INT - G D) T - TR + INT + G
Public policies designed to increase labor productivity do not include
a. subsidies for higher education. b. tax breaks for job retraining. c. tax breaks on corporate dividends. d. public education.
Leakages are offset by investment and government spending in the circular flow model.
Answer the following statement true (T) or false (F)