The labor theory of value
A) is what economists believe determines prices today.
B) says that wages must always be greater than prices.
C) says that the price of a good is determined by the amount of labor required to produce it.
D) All of the above.
C
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State how each of the following affect the aggregate demand curve
a. The price level increases. b. Consumers expect higher inflation in the future. c. The exchange rate rises. d. Foreign income decreases.
"The social cost of a monopoly comes from the fact that it charges a price higher than what consumers are willing to pay." Do you agree or disagree? Why?
What will be an ideal response?
Joe's Garage operates in a perfectly competitive market. At the point where marginal cost equals marginal revenue, ATC = $20, AVC = $15, and the price per unit is $10 . In this situation,
a. Joe's Garage will break even b. Joe's Garage will shut down immediately c. the market price will fall in the long run d. Joe's supply curve will shift to the left e. Joe's Garage will suffer a loss in the short run, but stay in business
If food is on the vertical axis and shelter on the horizontal axis, then the equation for the budget line can be expressed as
A. PsS + Pf = M. B. F = Pf - (Ps/Pf)S. C. S = M/Ps. D. S = M/Ps - (Pf/Ps)F.