A political candidate promises voters more funding for AIDS research and child care and assures them they will not have to sacrifice any other goods or services to obtain the additional programs.
A. This may be possible if the economy has unemployed resources.
B. This is possible only in a fully employed economy.
C. This is possible if the economy is producing on its production possibilities curve.
D. None of the choices are possible.
A. This may be possible if the economy has unemployed resources.
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In a market with perfectly competitive firms, the market demand curve is usually ____ and the demand curve facing each individual firm ____.
A. upward sloping; horizontal B. downward sloping; horizontal C. horizontal; downward sloping D. downward sloping; downward sloping
If AVC is subtracted from the ATC, the result is: a. economic profit
b. accounting profit. c. average fixed cost. d. marginal cost.
A price elasticity of supply of 0.56 means that:
a. for every 10 percent change in price, quantity supplied will move in the same direction by 0.56 percent. b. for every 10 percent change in price, quantity supplied will move in the opposite direction by 0.56 percent. c. for every 10 percent change in price, quantity supplied will move in the opposite direction by 5.6 percent. d. for every 10 percent change in price, quantity supplied will move in the same direction by 5.6 percent.
The main objective of advertising for a monopolistically competitive firm is
A) to differentiate the product and raise sales. B) to reduce cost. C) to earn long run profits. D) to comply with government requirements on product information.