The long-run aggregate supply curve represents the level of output possible if the economy:
A. has a zero inflation rate.
B. has no structural unemployment.
C. is operating at full capacity.
D. is operating at an unemployment rate of zero.
Answer: C
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Other things equal, expected income can be used as a direct measure of well-being
A) always. B) no matter what a person's preference to risk. C) if and only if individuals are not risk-loving. D) if and only if individuals are risk averse. E) if and only if individuals are risk neutral.
Which of the following best describes an oligopoly?
a. A few firms selling all automobiles b. One firm providing all tap water c. A few firms banding together to set gas prices d. Two firms manipulating e-book prices
Suppose that the production function for an economy is graphed with Real GDP on the vertical axis and labor on the horizontal axis. When the level of capital in this economy rises, it causes ____________________which shifts the LRAS curve ____________ resulting in ______________________
A) a movement down along a given production function; leftward; a shrinking economy B) the production function to shift downward; leftward; a shrinking economy C) a movement up along a given production function; rightward; economic growth D) the production function to shift upward; rightward; economic growth
If the marginal tax rate equals the average tax rate, the tax would be
A. proportional. B. regressive. C. progressive. D. uniform.