Real wages will rise if
A) money supply growth is less than expectations.
B) real interest rates fall.
C) aggregate demand is less than aggregate supply.
D) money supply growth exceeds the inflation rate.
A
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If the market value of a firm is $6 billion and Tobin's q is equal to 2, then the replacement cost of installed capital must be ________
A) $2 billion B) $3 billion C) $9 billion D) $18 billion
Suppose that in a perfectly competitive market, the market price is $10. A firm in that market has marginal cost of $10, average total cost of $12, and it is producing 100 units. The firm is
A) earning $1,000 in total economic profits and is maximizing economic profits. B) earning $200 in total economic profits and is maximizing economic profits. C) earning zero total economic profits and is not maximizing economic profits. D) incurring $200 in total economic losses and is minimizing economic losses.