As a manufacturer becomes a mass producer, generally productivity ____ and wage rates _____.
A. falls; fall
B. rises; rise
C. rises; fall
D. falls; rise
B. rises; rise
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A(n) ________ in aggregate demand will result from a decrease in ________
A) decrease; inflation B) increase; taxes C) increase; the budget deficit D) increase; government purchases
Barbara owns a small shop where dresses are made. At the end of a given month, she has 250 dresses. Her expenses for the month are $1,000 for rent, $6,000 for wages, $1,500 for fabric and thread, and $500 for electricity. Her total variable costs for the month are:
a. c and e. b. $4,000. c. $32 per dress. d. $7,500. e. $8,000.
Antitrust problems rarely appear in competitive markets
Indicate whether the statement is true or false
As wage rates rise to extremely high levels,
A. the income effect becomes stronger than the substitution effect. B. the substitution effect becomes stronger than the income effect. C. both the income effect and substitution effect become stronger. D. both the income effect and substitution effect become weaker.