Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2.
B. P2 and Y3.
C. P3 and Y1.
D. P2 and Y2.
Answer: B
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If we counted the value of non-cash, or in-kind, benefits given to the poor by the government, the poverty rate would be
A. higher. B. lower. C. not affected.
If there is always a 4-for-1 tradeoff between producing good X and good Y, it follows that the opportunity cost of X (in terms of Y) ____________________ and the PPF for these two goods is ______________________
A) decreases at low levels of X; a straight line B) rises at high levels of Y; bowed-outward C) decreases at high levels of X; bowed-outward D) is always the same; a straight line
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
If the market supply curve is given by S3, then in the long run firms will:
A. exit the market, leading the market supply curve to shift back to S1. B. exit the market, leading the market supply curve to shift back to S2. C. neither enter nor exit the market, so the market supply curve will remain at S3. D. enter the market, leading the market supply curve to shift back to S2.
A schedule of amounts of a good that people will purchase at various prices during a specific time period holding other factors constant is
A. supply. B. a market. C. demand. D. the market clearing price.