As market price increases in the short run, a profit-maximizing firm in a perfectly competitive market will expand output along its:
A. marginal cost curve.
B. average total cost curve.
C. average variable cost curve.
D. market demand curve.
Answer: A
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A decrease in population growth will lead to a ________ in the steady-state capital—labor ratio and a ________ in output per worker
A) fall; fall B) fall; rise C) rise; rise D) rise; fall
An increase in the price of steel to producers of refrigerators will cause
A) the quantity demanded for steel to increase. B) the demand for refrigerators to decrease. C) the quantity supplied of refrigerators to increase. D) the supply curve for refrigerators to shift left.
Use the above figure. Which graph depicts a normal good?
A) A B) B C) C D) D
The lag between an increase in government spending and the impact of this increased spending on the economy is called the __________ lag
A) effectiveness B) transmission C) legislative D) data