Which of the following is true of the MC curve?
a. It intersects the ATC curve at its minimum, but it does not intersect the AVC curve at its minimum.
b. It intersects the AVC curve at its minimum, but it does not intersect the ATC curve at its minimum.
c. It intersects both the ATC and the AVC curves at their minimums.
d. It intersects both the ATC and the AFC curves at their minimums.
e. It intersects both the AVC and the AFC curves at their minimums.
C
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The effects of a higher than expected price level are shown by
a. shifting the short-run aggregate supply curve right. b. shifting the short-run aggregate supply curve left. c. moving to the right along a given aggregate supply curve. d. moving to the left along a given aggregate supply curve.
Based on the graph showing the effective federal funds rate, once interest rates bottomed out after the 2001 recession, they ______.
a. levelled off for several years
b. began an upward trend that is still ongoing
c. increased consistently for several years
d. went up slightly one year then dropped rapidly
Suppose that the percentage change in demand is 20%, the price elasticity of demand is 3, and the percentage change in the equilibrium price is 4%. What is the price elasticity of supply?
A. 0 B. 2 C. 4 D. 5
Which of the following is a source of market failure?
A) unforeseen circumstances which leads to the bankruptcy of many firms B) a lack of government intervention in a market C) incomplete property rights or inability to enforce property rights D) an inequitable income distribution