A rightward shift in the aggregate demand curve generates a ________ inflation and ________ output.
A. demand-pull; higher
B. cost-push; lower
C. cost-push; higher
D. demand-pull; lower
Answer: A
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Which of the following is likely to happen if the government of a country lowers import tariffs?
A) The domestic producers will be safe from foreign competition. B) The revenue earned by the government will fall. C) The price of imported goods will rise in the domestic market. D) The volume of the country's imports will fall.
An important result in long-run equilibrium in monopolistic competition is that the equilibrium point results in
A. price = MR. B. price = ATC. C. price is greater than ATC. D. ATC = MC.
A free good is one that can be acquired without sacrifice.
a. true b. false
Which of the following statements concerning pollution is correct?
A) Economic efficiency requires that pollution be completely eliminated. B) Economic efficiency dictates that the optimal amount of pollution arises at the point at which price equals private marginal cost. C) Pollution should be reduced to the point at which the marginal benefit from further reduction equals the marginal cost of further reduction. D) Pollution should be reduced to the extent necessary to return production to the production possibilities frontier.