If population growth occurs while jobs are difficult to obtain or labor force participation does not increase
A) there may be little or no increase in a nation's labor resources.
B) per capita GDP is likely to increase sharply.
C) economic growth will be robust because any population gain is a plus.
D) a nation's labor resources will still continue to increase in both quality and quantity.
A
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If taxes are cut, there is
A) an increase in aggregate demand and the AD curve shifts rightward. B) a decrease in aggregate demand and the AD curve shifts leftward. C) an increase in the quantity of real GDP demanded and a movement up along the AD curve. D) a decrease in the quantity of real GDP demanded and a movement down along the AD curve. E) no change in aggregate demand, only a change in potential GDP.
Which of the following is true for a monopolist?
A) Being the only seller in the market, the monopolist faces the market demand curve. B) Being the only seller in the market, the monopolist faces a perfectly elastic demand curve. C) Being the only seller in the market, the monopolist faces a downward-sloping demand curve that lies below the marginal revenue curve. D) Being the only seller in the market, the monopolist faces a perfectly inelastic demand curve.
There are 1,000 identical firms in a price-taker industry. In the short run, the total revenues of each firm are less than total costs. What will happen in the long run?
a. Nothing, because each firm is already maximizing its profits. b. Additional firms will enter the market, and price will be driven down to where each firm will be making just enough to stay in business (cover its variable costs). c. Additional firms will enter the market, but the price will remain the same because the existing firms will not allow it to decrease. d. Firms will exit the market, and the product price will rise.
What are the four justifications for government intervention in the economy? Describe two in detail, providing an example of each.
What will be an ideal response?