A sandwich shop owner has the following information: P = MR = $4, ATC = $2, AVC = $1, MC = 4, and Q = 500. From this, she can determine:
A. her profits are not being maximized.
B. she has earned zero economic profits.
C. she has earned economic profits of $1,000.
D. she has earned economic profits of $1,500.
Answer: C
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The line showing potential GDP is a vertical straight line because
A) it represents the minimum level of real GDP in a recession. B) when nothing else changes, a higher price level has no effect on real GDP. C) the aggregate supply curve is upward sloping. D) economists are unsure about how to determine potential GDP. E) there is only one level of full employment at any point in time.
Keynes was especially concerned with explaining the ________ level of output and employment during the ________
A) low; 1920s B) low; 1930s C) high; 1920s D) high; 1930s
The short-run aggregate supply curve: a. has the same slope as the LRAS
b. shifts only when the LRAS shifts in the same direction. c. normally slopes upward to the right because the costs of labor and other inputs are relatively fixed in the short run. d. normally has a slope of zero, meaning the curve is horizontal.
____________ has settled four different allegations for illegal pharmaceutical marketing activities since 2002.
Fill in the blank(s) with the appropriate word(s).