Economic growth is represented by a:
a. leftward shift of a production possibilities curve
b. rightward shift of the long-run aggregate supply curve (LRAS).
c. horizontal long-run aggregate supply curve (LRAS).
d. downward shift of an aggregate production function.
b
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In this era of globalization, one of the main reasons why some countries have remained closed to the rest of the world is:
a. the fact that their governments follow policies that explicitly work against economic integration. b. racial discrimination. c. the fact that their governments impose extremely high mortgage taxes. d. the establishment of minimum wages. e. the fact that they are too poor to trade anything with the rest of the world.
With a union, the total number of workers hired is where
A. The marginal wage is negative. B. Employment is lower than at the competitive equilibrium. C. Employment and wages are both at the maximum possible levels. D. Employment could not be increased by reducing the wage rate.
Who gains in a voluntary trade?
What will be an ideal response?
A monopoly differs from monopolistic competition in that
A) a monopoly has market power while a firm in monopolistic competition does not have any market power. B) a monopoly can never make a loss but a firm in monopolistic competition can. C) in a monopoly there are significant entry barriers but there are low barriers to entry in a monopolistically competitive market structure. D) a monopoly faces a perfectly inelastic demand curve while a monopolistic competitor faces an elastic demand curve.