Refer to Figure 5-2. The efficient output level is
A) Qd. B) Qb. C) Qb - Qd. D) Qa.
D
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Which of the following changes shifts the AD curve down and to the left?
A) A temporary increase in government purchases B) A rise in the nominal money supply C) A decrease in corporate taxes D) A decrease in consumer confidence
The above figure shows the cost curves for a typical firm in a competitive market. Note that if p = 10, then MC = p at both q = 5 and q = 60. Can they both yield maximum profit? Explain
What will be an ideal response?
Technology or production processes developed in a particular country:
A. may give that country a temporary comparative advantage. B. may set that country back until they earn back the research and development costs. C. will give that country a permanent comparative advantage. D. generally are not transferrable to other nations.
Which of these statements best represents the law of supply?
a. When input prices increase, sellers produce less of the good. b. When production technology improves, sellers produce less of the good. c. When the price of a good decreases, sellers produce less of the good. d. When sellers' supplies of a good increase, the price of the good increases.