If the money wage rate and other resource prices do not change when the price level rises by 10 percent, ________
A) the long-run aggregate supply curve shifts leftward
B) the short-run aggregate supply curve shifts leftward
C) the long-run aggregate supply curve shifts rightward
D) there is movement along the short-run aggregate supply curve
D
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The price elasticity of supply of laptop computers equals 1.5 if
A) a rightward shift of the demand curve for laptops causes the quantity supplied to increase by 1.5 percent. B) a rightward shift of the demand curve for laptops causes a 1.5 percent increase in their price. C) for every 1 percent that laptop prices increase, computer makers produce another 1.5 percent laptops. D) for every $1.00 that laptops increase in price, computer makers produce another 150 laptops.
If a firm is producing an output level for which the market price exceeds the firm’s marginal cost,
a. consumers would be willing only to pay a price lower than what it costs the firm to produce another unit. b. consumers would be willing only to pay a price equal to what it costs the firm to produce another unit. c. consumers would be willing to pay a price greater than what it costs the firm to produce another unit. d. consumers would be willing only to pay a price equal to or lower than what it costs the firm to produce another unit.
An inverse relationship exists when:
a. there is no association between two variables. b. one variable increases and there is no change in the other variable. c. one variable increases and the other variable increases. d. one variable increases and the other variable decreases.
Why does the U.S. government most likely distribute military spending to bases across the country?
a. To encourage support of defense spending b. To limit the power of defense contractors c. To meet the demands of special interest groups d. To ensure that defense budgets are adequate