A decline in the quantity of real output demanded along the aggregate demand curve is a result of a(n):
A. decrease in the level of income.
B. decrease in the price level.
C. increase in the price level.
D. increase in the level of income.
Answer: C
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Under which of the following sets of circumstances is it definitely the case that the average product increases as more labor is hired?
A) Total product increases as more labor is hired. B) The marginal product is equal to the average product. C) The marginal product is positive. D) The marginal product is greater than the average product. E) The marginal product is less than the average product.
Suppose you're producing designer clothes for Barbie dolls. You're producing 100 units and discover that the MR for the 100th unit is $50 while the MC of the 100th unit is $45 . If you're in the short run, it's a signal for you to
a. shut down b. stay where you are because you're making profit on that unit c. increase production beyond 100 units d. produce less than 100 units e. it's no signal because price data is unknown
The National Maximum Speed Law, passed in 1974, forced states to keep speed limits at 55 miles per hour in an attempt to
A. reduce the variability of speed limits across states. B. conserve energy. C. save lives. D. raise law enforcement revenues through traffic fines.
It is in the interest of all parties to develop efficient solutions to agency problems through ________ so that more wealth can be shared among the contracting parties.
A. adverse selection B. contracting until marginal benefit (MB) equals zero C. implicit contracts D. value maximization