After a shift from AD0 to AD1, which of the following patterns of adjustment is consistent with the "Price Fooling" model?
A) A to B to E
B) A to F to E
C) A to C to E
D) A to C to A
C
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When the price of milk goes up as a result of a rightward shift of the demand curve for milk, the total revenue collected by milk producers will
A) increase only if milk is inelastic in supply. B) decrease only if milk is elastic in supply. C) remain constant only if milk has a unitary price elasticity of supply. D) none of the above
As a bank's assets become less risky, its
A) risk-based capital ratio rises. B) risk-based capital ratio falls. C) leverage ratio rises. D) leverage ratio falls.
Average cost is higher with a monopolistically competitive firm than with a perfectly competitive firm.
Answer the following statement true (T) or false (F)
Albert Fishlow argued that if the railroads were built ahead of demand we would observe initial profit rates that were ______ and initial population densities near railroads that were _______
a. low; high. b. high; low. c. low; low. d. high; high.