A decrease in the wage rate causes
A) an increase in the quantity of labor demanded.
B) a rightward shift of the firm’s labor demand curve.
C) a leftward shift of the firm’s labor demand curve.
D) a decrease in labor’s productivity.
To maximize their profits and defend those profits from competitors, monopolistically
competitive firms must
A) lobby government to erect barriers to entry in their industries.
B) limit foreign competition in their markets by encouraging the government to impose
tariffs and other trade restrictions.
C) differentiate their products.
D) achieve economies of scale.
Which of the following statements describes the experiences of the Whirlpool
Corporation since it was established in 1911?
A) strong uninterrupted growth in demand
B) long-run growth interrupted by periods of business cycle recession
C) little or no growth in the long run, and unaffected by the business cycle
D) little or no growth in the long run, but very vulnerable to the business cycle
A public franchise
A) is a corporation that is owned by stockholders.
B) results from ownership of a key raw material.
C) is a government designation that a private firm is the only legal producer of a good
or service.
D) is an unregulated monopoly necessary for the public good.
The federal government debt as a percentage of GDP fell during the period
A) 2002 – 2007.
B) 1980-1992.
C) during World War I and World War II.
D) 1997-2001.
E) the Great Depression.
Prices of PlayStation 4 game systems are similar at almost every large retailer and little
price competition occurs among these retailers. An explanation for this is
A) retailers are all price takers.
B) retailers have lobbied state governments to allow them to collude legally to set the
prices of certain products.
C) pricing PlayStation 4 game systems is a repeated game. Over a long period of time a
cooperative equilibrium has been reached where retailers charge high prices for these
systems.
D) retailers are in a prisoner’s dilemma which causes them to all charge the same price
for PlayStation 4 game systems.
Which of the following contributed to the downfall of the Soviet Union in 1991?
A) public dissatisfaction with low living standards and political repression
B) producing higher-quality goods than were desired by consumers
C) the rapidly increasing standard of living
D) the lack of a strong dictator who can coordinate economic activities
Refer to Figure 11-13. The lines shown in the diagram are isocost lines. If the price of
labor is $50 per unit, what is the price of capital along the isocost CE?
A) $400 per unit
B) $100 per unit
C) $25 per unit
D) insufficient information to answer question
Which government agency publishes four-firm concentration ratios?
A) the Economic Council
B) the Federal Reserve System
C) the U.S. Bureau of the Census
D) the Treasury Department
Evidence shows that for many people, delaying searching for a job for a year or longer
after they are laid off will contribute to a deterioration of their job skills, making it
harder for them to find employment. This deterioration in job skills and the subsequent
retraining that is necessary to obtain employment relates to which type of
unemployment?
A) cyclical
B) frictional
C) seasonal
D) structural
Which of the following explains the changes in the U.S. adult male labor force
participation rate since 1948?
A) More men are joining the military as compared to the past.
B) More men are retiring later in life as compared to the past.
C) Fewer men consider themselves discouraged workers as compared to the past.
D) Younger men are remaining in school longer as compared to the past.