Under perfect competition, the supply curve is
A. the marginal cost curve, but only the portion that is downward sloping.
B. the marginal cost curve for all price quantity combinations.
C. the marginal cost curve, but only the portion that is upward sloping.
D. the marginal cost curve, but only the portion that is above the minimum of average variable cost.
Answer: D
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Suppose that aggregate demand increases along the upward sloping portion of the aggregate supply curve. What is the result?
A) Real GDP increases more than nominal GDP increases. B) Nominal GDP and real GDP increase by the same amount. C) Nominal GDP increases more than real GDP increases. D) Nominal GDP and real GDP decrease by the same amount.
In a world of perfect certainty, sharecropping would be less efficient than a farm owner working his own farm because
(a) sharecroppers receive only half of their marginal product. (b) paying a worker a wage gives him or her an incentive to shirk. (c) sharecroppers are exploited by landlords. (d) renting farmland concentrates risk on the renters. (e) all of the above.
In order to practice price discrimination successfully, a monopolist must ensure that there is no resale of the product
a. True b. False Indicate whether the statement is true or false
A technological innovation that increases the marginal physical product of capital would eventually result in a(n)
a. increase in the interest rate b. decrease in the interest rate c. shift to the right of the supply curve of loanable funds d. increase in the quantity demanded of loanable funds and a decrease in the quantity supplied of loanable funds, which leaves the interest rate unchanged e. shift to the left of the supply curve of loanable funds