Which of the following changes will cause a downward movement along the money demand curve?
a. An increase in the interest rate
b. A decrease in the interest rate
c. A decrease in real GDP
d. An increase in real GDP
e. An increase in the price level
b
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If faced with the same cost conditions as a perfectly competitive firm, a monopoly will
a. charge a lower price than the perfectly competitive firm. b. charge a higher price than the perfectly competitive firm. c. charge the same price as the perfectly competitive firm. d. refuse to operate in the short run unless an economic profit can be made.
Assume a farmer has the ability to produce corn and/or beans. Whenever the farmer spends 1 hour less producing corn and 1 hour more producing beans, he reduces his output of corn by 2 bushels and raises his output of beans by 3 bushels. In view of these assumptions, the farmer's production possibilities frontier is bowed out
a. True b. False Indicate whether the statement is true or false
The long-run average cost curve is tangent to the short-run average total cost curve at the minimum point of the short-run average total cost curve when the:
A. firm is experiencing constant returns to scale. B. firm is experiencing economies of scale. C. long-run average cost curve is upward-sloping. D. long-run average cost curve is downward-sloping.
In the ___________, total production keeps growing, but by smaller and smaller amounts.
Fill in the blank(s) with the appropriate word(s).