A perfectly competitive firm's short-run break-even output occurs
A. at the minimum point of its average total cost curve.
B. at the intersection of its total cost curve and its marginal revenue curve.
C. at the minimum point of its average variable cost curve.
D. at the minimum point of its marginal cost curve.
Answer: A
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In the Keynesian model, suppose the Fed sets a target for the real interest rate. If the IS curve shifts up and to the right, and the Fed wants to keep output unchanged in the short run and the price level unchanged in the long run, it will
A) shift the LR curve up. B) not shift the LR curve. C) shift the LR curve down. D) shift the IS curve up and to the right.
Repealing a tariff will likely
A) increase the quantity produced domestically, increase the quantity purchased domestically, and reduce the price charged domestically. B) reduce the quantity produced domestically, increase the quantity purchased domestically, and reduce the price charged domestically. C) reduce the amount produced abroad, reduce the price domestically, and reduce the quantity purchased domestically. D) increase the amount produced abroad, increase the price domestically, and reduce the quantity purchased domestically.
What is likely to occur over the long run if it is easy for new firms to enter an oligopolistic industry?
a. The general level of prices will begin to approach average total cost. b. The general level of prices will rise well above average total cost. c. It will become easier for a cartel to form consensus about pricing decisions. d. The industry will become more oligopolistic and could trigger an antitrust probe.
The U.S. inflation adjusted poverty threshold in 2014 was set at $35,000 per year for a family of four.
Answer the following statement true (T) or false (F)