A profit maximizing monopolist will hire labor up to the point where
A) marginal revenue product equals the price of the product.
B) marginal revenue product is greater than the wage rate.
C) marginal revenue product equals than the wage rate.
D) marginal revenue product is less than the wage rate.
C
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Which of the following increases aggregate demand and shifts the AD curve rightward?
A) a fall in the price level B) an increase in the quantity of money and a resulting fall in the interest rate C) predictions of a recession that lead to expectations of lower future income D) an increase in the exchange rate that makes imports less expensive
In the above figure, the second ton of wheat would be produced even though the producer surplus on it is zero if the price per ton of wheat was
A) $25. B) $50. C) $75. D) $100.
The concept of "scarcity" implies that: a. all output combinations below a nation's production possibilities frontier is unattainable
b. a nation should allocate its resources to the production of only one good. c. a nation is limited in its capacity to produce goods and services by its available resources and technology. d. all production combinations above a nation's production possibilities frontier are inefficient.
Fiscal policy cannot be used to move the economy along the short-run Phillips curve
a. True b. False Indicate whether the statement is true or false