In the markets for the factors of production in the circular-flow diagram,
a. households are sellers and firms are buyers.
b. households are buyers and firms are sellers.
c. households and firms are both buyers.
d. households and firms are both sellers.
a
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What would the Herfindahl-Hirschman Index equal for an industry consisting of 20 firms with each holding a 5% market share?
a. 20 b. 100 c. 500 d. 2,500
When marginal revenue is zero for a monopolist facing a downward-sloping straight-line demand curve, the price elasticity of demand is:
a. equal to 1. b. equal to 0. c. greater than 1. d. less than 2.
An increase in labor's productivity will cause the SRAS curve to shift __________ and the price level to __________
A) leftward; increase B) rightward; decrease C) rightward; increase D) leftward; decrease
Refer to the figure above. If AD 1 shifts to AD 2, then the equilibrium output:
Increases from Q1 to Q3 while the price level falls from P2 to P1 Increases from Q1 to Q2 while the price level rises from P1 to P2 Increases from Q1 to Q3 while the price level rises from P1 to P2 Increases from Q1 to Q2 while the price level falls from P2 to P1