Refer to the graph. Which one of the following would cause a move from point d to point e along short-run average total cost curve ATC 2?
A. Diminishing marginal returns.
B. An increase in the wage rate.
C. A decrease in the wage rate.
D. Increasing marginal returns.
D. Increasing marginal returns.
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Indicate whether the statement is true or false
If both the price level and nominal incomes change by the same percentage:
A. real GDP will remain constant. B. the aggregate supply curve will be upward-sloping. C. profit margins will change in real terms. D. the long-run aggregate supply curve will be horizontal.
Why do bank runs usually have people rushing to their bank instead of waiting for the lines to taper off so they do not have to wait so long?
What will be an ideal response?
If the market price of green tea is $20.00 per pound and the government will not allow green tea growers to charge more than $25.00 per pound of green tea, which of the following will happen?
A. Demand must eventually decrease so that the market will come into equilibrium at a price of $17.50. B. Supply must eventually increase so that the market will come into equilibrium at a price of $17.50. C. There will be a shortage of green tea. D. The price ceiling will be ineffective and the market will remain in equilibrium.