A firm's MC curve will shift rightward as a result of a rise in its variable input prices. (Hint: draw this out and determine which direction makes the most intuitive sense to you).
a. true
b. false
Answer: b. false
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In the above figure, the economy is at point a on the initial demand for loanable funds curve DLF0. What happens if the real interest rate rises?
A) There is a movement to a point such as b on the demand for loanable funds curve DLF0. B) The demand for loanable funds curve shifts rightward to a curve such as DLF2. C) The demand for loanable funds curve shifts leftward to a curve such as DLF1. D) none of the above
What best describes the changes in steel production from 1860-1910?
a. The Bessemer process replaced earlier methods of production and became the dominant method of producing steel by 1910. b. The Bessemer process replaced older methods of production and was later displaced by the open-hearth process. c. The open-hearth process, the first method of producing steel, was replaced by the Bessemer process. d. The Grandy process replaced both the open-hearth process and older technologies.
In the short run, a monopolist will shut down when
a. average total cost is greater than price at all output levels b. average variable cost is greater than average fixed cost at all output levels c. price is greater than average variable cost at all output levels d. average fixed cost is greater than price at all output levels e. average variable cost is greater than price at all output levels
Which of the following areas of study typifies microeconomics as opposed to macroeconomics?
a. the impact of minimum-wage laws on employment in the fast food industry b. the effect of changes in household saving rates on the growth rate of national income c. the impact of faster money growth on the rate of inflation d. a comparison of alternative tax policies and their respective impacts on the rate of the nation's economic growth