Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential
B. higher; higher
C. higher; potential
D. lower; higher
Answer: A
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Which of the following models results in the greatest total profit, assuming a fixed number of firms with identical costs and a given demand curve?
A) Cournot B) Stackelberg C) Monopoly D) Perfect competition
Refer to the above table. The balance of trade is
A) $1000. B) -$665. C) +$335. D) -$155.
The circular flow diagram of economic activity is a model of the
a. flow of goods, services, and payments between households and firms. b. influence of government on business behavior. c. role of unions and government in the economy. d. interaction among taxes, prices, and profits.
If Weiskamp T-shirt Co lowers its price from $6 to $5 and finds that students increase their quantity demanded from 400 to 600 T-shirts, then the demand for Weiskamp T- shirts within the $5 to $6 price range is
a. price inelastic b. price elastic c. unit elastic d. cross elastic e. income inelastic