If the country of Versovia experiences an inflationary gap and the central bank of the country reduces the money supply in the economy, there will be a(n):
a. decrease in both the output level and the price level in the economy
b. decrease in the output level and an increase in the price level in the economy.
c. increase in the output level and a decrease in the price level in the economy.
d. increase in the both the output level and the price level in the economy.
a
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If marginal cost exceeds average variable cost but is less than average total cost, then as output increases average total cost ________ and average variable cost ________
A) increases; decreases B) decreases; decreases C) increases; increases D) decreases; increases
An economic expansion tends to cause the federal budget deficit to ________ because tax revenues ________ and government spending on transfer payments ________
A) increase; rise; falls B) decrease; rise; falls C) decrease; fall; rises D) increase; fall; rises
Which of the following statements is FALSE about the long-run effects of outsourcing?
A) Outsourcing allows countries to specialize in producing what they can produce most efficiently. B) More goods and services can be produced than in the absence of outsourcing. C) Globally wages will increase because of outsourcing. D) Employment levels will decrease globally as the result of outsourcing.
A firm's labor demand curve shows the relationship between the
a. wage rate and the quantity of labor supplied b. marginal revenue product of labor and the marginal product of labor c. wage rate and the quantity of labor demanded d. marginal product of labor and the quantity of labor demanded e. wage rate and the quantity demanded of the good produced by labor