If the price index last year was 100 and today it is 104, what is the inflation rate over this period?
(a) -4%;
(b) 1.4%;
(c) 4%;
(d) 40%.
Ans: (c) 4%;
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The relationship between the labor employed by a firm and the real wage rate is shown by the
A) supply of labor curve. B) supply of jobs curve. C) demand for jobs curve. D) demand for labor curve.
An increase in which of the following would cause the aggregate demand curve to shift to the left?
A. Income Taxes B. Estate and Gift Taxes C. Employment Taxes
Suppose there are two firms maintaining a cartel agreement. If one firm suddenly drops its price, the other firm could interpret this as signaling:
A. a change in market conditions. B. limit pricing. C. cartel pricing. D. cooperative pricing.
In the figure above, if the market is at equilibrium, then the total consumer surplus equals the area ________ and the total producer surplus equals the area ________
A) A; B B) B; C C) C; B D) A; C E) A + B; C