The short-run response of quantity demanded to a change in price is usually:
A. greater than the long-run response.
B. the same as the long-run response.
C. less than the long-run response.
D. None of the statements is correct.
Answer: C
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How would an increase in cigarette taxes succeed according to the following criteria: collecting a large amount of tax revenue; distorting demand as little as possible; discouraging consumption of harmful commodities?
What will be an ideal response?
Suppose we observe an economy experience an economic expansion and high inflation. This means the expansion is attributed to
a. growth in aggregate demand. b. growth in aggregate supply. c. a reduction in aggregate demand. d. a reduction in aggregate supply.
If the production function exhibits diminishing marginal product, the total cost function gets steeper as the quantity of output increases
a. True b. False Indicate whether the statement is true or false
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.