Which of the following curves reflects the situation in which a firm has complete flexibility in the choices of resources?
a. TFC
b. SRATC
c. LRATC
d. AVC
e. AFC
C
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Residential housing consumption is not affected by U.S. personal income taxes.
A. True B. False C. Uncertain
According to the above table, the market clearing (equilibrium) price would adjust to
A. $3. B. $1. C. $5. D. $4.
Refer to the above figure. If a price floor of $5 was set
A. the quantity sold would be 80 units. B. there would be a shortage of 20 units. C. the quantity demanded would be 100 units. D. the quantity sold would be 60 units.
Suppose that prices are sticky in the short-run. Which of the following best describes the economy's response to a negative demand shock?
A. Firms' inventories will increase, causing them to cut production. Ultimately, real GDP will decrease and unemployment will increase. B. Firms' inventories will decrease, causing them to increase production. Ultimately, real GDP will increase and unemployment will decrease. C. Firms' inventories will increase, causing them to cut production. Ultimately, real GDP will increase and unemployment will increase.