An industry has 1000 competitive firms, each producing 50 tons of output. At the current market price of $10, half of the firms have a short-run supply curve with a slope of 1; the other half each have a short-run supply curve with slope 2
The short-run elasticity of market supply is A) 1/50
B) 3/10
C) 1/5
D) 2/5
E) none of the above
B
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Which of the following is true?
A) At full employment, aggregate supply is equal to potential GDP. B) Aggregate supply is another name for potential GDP. C) Potential GDP decreases as the price level increases. D) The potential GDP line has a negative slope. E) Potential GDP increases as the price level increases.
Product differentiation allows a firm to compete with another firm on the basis of
A) efficiency. B) elasticity. C) quality, price, and marketing. D) the level of output and the price. E) demand.
How might financial deepening contribute to poverty reduction?
What will be an ideal response?
For goods on which a relatively small portion of income is expended, _____
a. income effects will be small relative to substitution effects b. income effects will be large relative to substitution effects c. income effects will be about the same as substitution effects d. there will be no income effects.