In the short run, the aggregate supply curve is:
A. horizontal.
B. downward sloping.
C. upward sloping.
D. vertical.
Answer: C
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If population growth occurs while jobs are difficult to obtain or labor force participation does not increase
A) there may be little or no increase in a nation's labor resources. B) per capita GDP is likely to increase sharply. C) economic growth will be robust because any population gain is a plus. D) a nation's labor resources will still continue to increase in both quality and quantity.
In the long run, a perfectly competitive firm maximizes profit so P = MC = AC.
Answer the following statement true (T) or false (F)
When the long-run average cost curve is downward sloping,
A) economies of scale are present. B) diseconomies of scale are present. C) the firm experiences constant returns to scale. D) the average fixed cost curve must be upward sloping. E) The premise of the question is wrong because long-run average cost curves never slope downward.
Suppose the government passes laws that require restaurants to disclose the nutritional content of their menu items. This would be an example of a:
A. nudge. B. flawed assumption. C. shadow price. D. push.