The use of the supply-and-demand model to analyze labor markets implicitly assumes that there
A. is one seller of labor.
B. is one buyer and one seller of labor.
C. are many buyers and sellers of labor.
D. is one buyer of labor.
Answer: C
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When economists talk about the gains from trade they mean that
A) no one ever gets hurt by trade. B) the benefits of trade outweigh the losses. C) business firms benefit from trade but not necessarily individuals. D) trade increases government revenue through taxes on imports. E) economic restructuring is usually quick and painless.
A monopoly:
a. can increase price and increase output at the same time. b. can charge any price it wants and still sell all of its output. c. can sell any output it produces provided it accepts the market price. d. must lower price in order to increase output. e. faces a perfectly elastic demand curve.
If technology improves when a nation is in the intermediate range and only the Aggregate Supply changes, then:
a. Real GDP rises and average price level falls. b. Real GDP rises and real GDP remains the same. c. Real GDP remains the same and average price level falls. d. Real GDP remains the same and average price level rises. e. Real GDP remains the same and average price level remains the same.
In a market system, which of the following is a major benefit of making the firm's owners and investors exclusively shoulder the business risk?
A. Those who deeply dislike business risk will not have anything to do with the business B. This allows firms to more easily attract labor and other suppliers of inputs C. This reduces the business risk in the economy D. It makes it easier for the government to monitor and manage the business risk