If a market begins in equilibrium and then the demand curve shifts leftward, a
A) surplus is created, which is eliminated by a rise in price.
B) shortage is created, which is eliminated by a rise in price.
C) shortage is created, which is eliminated by a fall in price.
D) surplus is created, which is eliminated by the supply curve shifting leftward.
E) surplus is created, which is eliminated by a fall in price.
E
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Which of the following does not hold true for a perfectly competitive firm in long-run equilibrium?
A) Its economic profit will be zero. B) It will minimize average total cost. C) It will charge a price equal to marginal cost. D) Marginal cost will be minimized.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from
A. B to A. B. C to D. C. B to D. D. A to C.
Why did the lowering of real interest rates during the Great Recession not boost investment spending?
What will be an ideal response?
Economists generally believe that
A. regulation is the only effective way to reduce pollution. B. free market activity cannot coexist with a clean environment and regulation is the only effective way to reduce pollution. C. private incentives can be used to motivate individuals to act "green." D. free market activity cannot coexist with a clean environment.