In a perfectly competitive market:
A. only price adjusts in both the short run and the long run.
B. only quantity adjusts in both the short run and the long run.
C. price does more of the adjusting in the short run and quantity does more of the adjusting in the long run.
D. price does more of the adjusting in the long run and quantity does more of the adjusting in the short run.
Answer: C
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Refer to the table below. According to the table, Corey has the absolute advantage in: Pizzas MadePer HourPizzasDeliveredPer HourCorey126Pat1015
A. neither making nor delivering pizza. B. making and delivering pizza. C. delivering pizza. D. making pizza.
Consider a closed economy without the government. If the savings rate in the economy is 20% and the aggregate savings is $10,000, the aggregate consumption in the economy is:
A) $37,000. B) $45,000. C) $10,000. D) $50,000.
Which of the following equations is true of a profit-maximizing firm?
A) Wage = value of worker's marginal product B) Wage = worker's marginal product C) Wage = worker's total product D) Wage = average product of all workers
Suppose a country offers a new investment tax credit. Which curve(s) in the aggregate demand and aggregate supply model would be affected, and which way would it (they) shift?