Which of the following is an example of the law of demand?
A. A decrease in the price of tea is followed by a decrease in tea purchases.
B. An increase in the price of tea has no effect on the amount of tea purchased.
C. A decrease in the price of tea is followed by an increase in tea purchases.
D. The amount of tea purchased increases when the price is constant.
Answer: C
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A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. The marginal revenue product of the second worker is
A. $24. B. $8. C. $9. D. $15.
How were macroeconomic balances different in the period from 2000 to 2007 from past financial crises?
What will be an ideal response?
If every participating firm has the same marginal benefit from industrywide advertising, then ________.
A) requiring every firm to pay the same amount for advertising is not likely to create dissatisfaction amount the firms B) every firm should be required to pay nothing for the advertising C) requiring every firm to pay different amounts for advertising is not likely to create dissatisfaction amount the firms D) requiring every firm to pay the same amount for advertising is likely to create dissatisfaction amount the firms
When the economy is producing Real GDP at the level at which the LRAS curve intersects the AD curve the economy is
A) in a recessionary gap. B) in long-run equilibrium. C) in an inflationary gap. D) operating at less than full-employment output.