Demand curves usually slope downward because of the income and substitution effects, and because of the law of diminishing marginal utility
a. True
b. False
A
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A decrease in business taxes will tend to ________.
A. decrease aggregate demand B. increase aggregate supply C. increase aggregate supply but not change aggregate demand D. increase aggregate demand but not change aggregate supply
A trade imbalance occurs when:
A. exports from and imports to a country suddenly decline. B. a country does not import or export any goods or services. C. the quantity of imports equals the quantity of exports, but are large relative to total output. D. the quantity of a country's exports differs significantly from the quantity of imports.
Company A has just discovered that the marginal revenue product generated by the last worker hired was $80 while the marginal factor cost was $85. What should Company A do?
A. Leave the level of production unchanged. B. Increase the amount produced. C. Reduce the amount produced. D. Collect more information before making a decision.
Which of the following factors will not cause the labor demand curve to shift?
A) the wage rate B) changes in technology C) a change in the price of the product produced with labor D) increases in human capital