All else constant, a decrease in the per unit price of labor would create an incentive for a firm manager to substitute labor for capital in the firm’s production process. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Studies and experience suggest that labor and capital are highly complementary inputs to the production of pipe organs. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Business taxes increase. What is the impact on aggregate expenditures and income? A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases. ANSWER B
Date: September 10th, 2020
Predatory pricing will be most effective when the costs structures of the firms in an industry, including potential entrants into the market, are identical or at least very similar. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
As the number of available substitutes for a good increases, the price elasticity of demand for the good will increase as well. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In the market for cell phones, all of the following would cause the supply of cell phones to change except: A) an improvement in the technology used to produce cell phones. B) an increase in the cost of labor used to produce cell phones. C) a change in cell phone producers’ expectations. D) an increase […]
Date: September 10th, 2020
The ability to make a credible commitment is necessary for the first mover to gain an advantage in a sequential game. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Capacity utilization increases. What is the impact on aggregate expenditures and income? A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases. ANSWER A
Date: September 10th, 2020
Assuming capital and labor are substitutes, an improvement in technology that affects only the productivity of capital would cause a firm to employ more capital but leave the amount of labor employed unchanged. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Which of the following would not cause the supply curve for gasoline to shift? A) A change in the wages paid to gas station attendants. B) A change in the number of gas stations. C) A change in the incomes of drivers. D) A change in the cost of refining oil. ANSWER C
Date: September 10th, 2020
