For a perfectly competitive firm at its long-run equilibrium
A) P = MR = MC = AC.
B) P = MR > MC.
C) accounting profit must be zero.
D) there are no opportunity costs to be concerned with.
A
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If the adoption of a new technology led to gains in productivity ________
A) the ensuing positive supply shock would lead to an immediate increase in output B) in the short-run, the ensuing increase in supply would lower inflation C) and if this new technology permanently altered the productive capacity of the economy then the increase in output and decrease in inflation would be permanent as well D) all of the above E) none of the above
A shock that increases the costs of production is a
A) positive aggregate demand shock. B) positive aggregate supply shock. C) negative aggregate demand shock. D) negative aggregate supply shock.
The Employment Act of 1946 reflects which one of the following functions of government?
A) providing a legal system B) improving economy-wide stabilization C) correcting externalities D) providing public goods
Assume that supply increases slightly and demand increases greatly. Which of the following will happen?
a. equilibrium price will fall and equilibrium quantity will rise b. equilibrium price will rise and equilibrium quantity will fall c. equilibrium price will rise and equilibrium quantity will rise d. equilibrium price will fall and equilibrium quantity will fall e. neither equilibrium price nor equilibrium quantity will change