When market wages increase in a perfectly competitive market, then
A) the marginal factor cost increases.
B) the marginal product increases.
C) the marginal factor cost decreases.
D) the marginal product decreases.
Answer: A
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When the economy is in the liquidity trap,
A) velocity is constant. B) monetary policy is impotent. C) fiscal policy is impotent. D) income is zero
In the neoclassical growth model without technological progress, the steady-state growth rate of per capita output is
a. the growth of technology plus the growth of population. b. the growth of population. c. the growth of technology. d. the growth of technology plus population plus depreciation.
When a perfectly competitive firm sells additional units of output, ________, and when a monopolist sells additional units of output, ________.
A. marginal revenue stays the same; marginal revenue rises B. total revenue rises; total revenue falls C. total revenue does not change; total revenue rises D. total revenue always rises; total revenue could rise, fall, or remain unchanged
Define the economic concept of elasticity
What will be an ideal response?