Long-run aggregate supply reflects
A. total production in the economy at full employment.
B. the amount of natural resources in a nation.
C. both production and spending in the economy.
D. total spending in the economy at full employment.
Answer: A
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Comparable worth advocates have proposed that employers be required by law to pay wage rates equal to the value of the job. The most telling objection to this proposal is that
A) employers will probably resist strenuously and successfully. B) it is in the interest of employers to adjust their hiring so as to make the value of the job equal to the wage rate that must be paid. C) the government has no legal authority to set wage rates in the private sector. D) this would leave little or nothing for profits.
Lucinda starts a business consulting company. She makes all the business decisions and bears the risk of running the business. The typical payment for Lucinda's work is ________
A) all the revenue greater than her opportunity cost B) all the revenue greater than the capital investment C) a normal profit D) an economic profit