Which of the following determines equilibrium wages in perfectly competitive labor markets?
a. The government.
b. Monopoly employers.
c. Where the supply and demand of labor are equal.
d. The requirements of a living wage.
QUESTION 2If government purchases increase and net taxes decrease, _____.
a. the price level will fall
b. money supply must rise
c. the aggregate demand curve shifts leftward
d. aggregate supply shifts rightward
e. output and employment will increase
QUESTION 3Economies of scale exist over all ranges of output for which short-run average total cost exceeds long-run average cost.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Which of the following actions would increase the consumption spending component of the gross domestic product (GDP)?
a. Ann cooking dinner for Tim instead of going out
b. Ann and Tim buying a used microwave oven
c. Ann and Tim buying vegetables to prepare soup at home
d. Tim buying Ann a dress
e. Tim and Ann painting the garage themselves
QUESTION 5A technological advance that increases the productivity of teachers can be expected to have what effects on the equilibrium labor market for teachers?
a. Wages will rise, and quantity of labor will fall.
b. Wages will rise, and quantity of labor will rise.
c. Wages will fall, and quantity of labor will fall.
d. Wages will fall, and quantity of labor will rise.
e. Wages and quantity of labor will remain the same.
QUESTION 6When spending by the federal government exceeds net taxes, _____.
a. the price level tends to fall
b. the money supply must fall
c. the aggregate demand curve shifts rightward
d. aggregate supply moves rightward
e. there is a federal budget surplus
QUESTION 7Each short-run average total cost curve is tangent at its lowest point to the long-run average cost curve.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 8Which of the following would be included in the gross domestic product (GDP)?
a. The monthly telephone bill paid by Mr. Jones
b. The corporate stock purchased by Steven
c. The used limousine purchased by Harold
d. The bricks purchased by a construction company to build a house
e. The 300 George saved because he painted his own garage
QUESTION 9A worker's accumulated investment in education, training, experience, and health is called:
a. derived labor demand.
b. collective entrepreneurship.
c. seniority.
d. human capital.
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