Which of the following will decrease the demand for labor in the fast-food hamburger industry?
a. a decrease in the cost of producing the hamburgers, e.g., lower wage rate
b. the price of pizza, a substitute for hamburgers, decreases
c. the price of pizza, a substitute for hamburgers, increases
d. more advanced technology is used in making fast-food hamburgers
e. the price of hamburgers increases
B
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If an increase in the level of the money supply results in a proportionate increase in prices with no effect on any real variables, we say that
A) the Fisher relationship holds. B) money is neutral. C) money is superneutral. D) money is the most preferred store of value.
When a perfectly competitive firm is in long-run equilibrium, economic profits
A) are positive. B) are zero. C) are negative. D) may be positive, zero or negative depending upon costs.