Refer to Figure 17-1. Suppose that the economy is currently at point A. If the Federal Reserve engaged in contractionary monetary policy, where would the economy end up in the short run?
A) It would remain at point A.
B) point B
C) point C
D) point D
E) point E
B
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According to efficiency wage models, labor productivity depends on
A) the number of employees at a firm; the smaller the number of employees, the more productive each employee is. B) the amount of capital that employees have to work with. C) the wage rate the firm pays its employees; a cut in wages can cause labor productivity to decline. D) whether or not the economy is currently producing Natural Real GDP. E) none of the above
The price charged by a profit-maximizing monopolist occurs at:
A.) The minimum of the average total cost curve. B.) The price where marginal cost equals marginal revenue. C.) A price on the demand curve above the intersection where marginal revenue equals marginal cost. D.) A price on the average cost curve below the point where marginal revenue equals marginal cost.
Evaluate the statement: “There is no difference between the labor supply curve for the single competitive firm and the supply curve in a competitive market for labor.”
What will be an ideal response?
Related to the Economics in Practice on p. 10: Based on a study of the effects of roommates on college grades discussed in the Economics in Practice, which of the following is true?
A. The effects of roommates on fraternity membership are strong. B. The effects of roommates on effort in school are strong. C. The effects of roommates on grade point average are strong. D. all of the above