If an economy imposes entry barriers to entrepreneurship:
A) the opportunity cost of entrepreneurship will increase.
B) the number of entrepreneurs in the economy will increase.
C) the aggregate output in the economy will increase.
D) the opportunity cost of entrepreneurship will decrease.
A
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Comment on the following statement: "For a monopolist, marginal revenue is always equal to price."
What will be an ideal response?
Government outlays
a. are the same as "G" in the short-run macro model. b. do not include transfer payments. c. are always smaller than government purchases. d. are always greater than government purchases. e. tend to decline in the long run.
Risk-averse people will choose different asset portfolios than people who are not risk averse. Over a long period of time, we would expect that
a. every risk-averse person will earn a higher rate of return than every non-risk-averse person. b. every risk-averse person will earn a lower rate of return than every non-risk-averse person. c. the average risk-averse person will earn a higher rate of return than the average non-risk-averse person. d. the average risk-averse person will earn a lower rate of return than the average non-risk-averse person.
How does the aggregate demand and aggregate supply model return to long-run equilibrium after an increase in spending growth?
A. The SRAS curve shifts up and to the left as inflation expectations adjust. B. The AD curve shifts back to the left as inflation expectations adjust. C. The AD curve shifts out to the right as inflation expectations adjust. D. The SRAS curve shifts down and to the left as inflation expectations adjust.