A firm's demand for labor is known as a "derived demand" because
a. the firm gains utility from hiring more labor.
b. the amount of labor hired depends upon how much output the firm can sell.
c. the wage rate paid to workers is derived from the market for labor.
d. it is derived from the demand for capital.
b
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Total expenditure equals total income
A) if firms do not save for future investment. B) if firms earn zero profit. C) because firms pay out everything they receive as income to the factors of production. D) only if net taxes equals government expenditures on goods and services. E) only if firms sell all the goods they produce in a given time period.
In the Classical model, the price level is determined by
A) aggregate supply. B) the level of output. C) the Cambridge k. D) aggregate demand.
If movies are an inferior good, movie attendance will rise when consumer incomes fall
a. True b. False Indicate whether the statement is true or false
Which of the following is true?
What will be an ideal response?