A change in inflation leads to shifts of the ________ curves
A) MP, IS, & AD
B) MP & IS, but not AD
C) IS & AD, but not MP
D) MP, but not IS nor AD
E) none of the above
E
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If, as a result of doubling all its inputs, a firm can more than double its output, the firm's production function exhibits
a. constant returns to scale. b. increasing returns to scale. c. decreasing returns to scale. d. increasing marginal productivity to at least one input.
If inflation is much higher than originally anticipated, _____ are better off and _____ are worse off
a. lenders who extended loans at fixed interest rates; people who borrowed at fixed interest rates b. people who borrowed at fixed interest rates; banks that extended loans at fixed interest rates c. retired people living on a fixed income; people who had borrowed fixed interest rate loans d. people who deposited their savings at fixed interest rates; banks that accepted deposits at fixed interest rates e. oil refiners who signed labor contracts agreeing to pay their workers the cost-of-living wage; workers who receive that cost-of-living wage
Which of the following is not a key feature of monopolistic competition?
a. Excess capacity b. A markup of price over marginal cost c. Positive economic profits for firms in the long run d. Differentiated products among firms in the market
When there are increasing returns to scale, average costs must be:
a. falling. b. rising. c. constant. d. falling, then rising.