The inflation determines more by:
a. demand-pull inflation forces.
b. expected inflation forces.
a. demand-pull inflation forces. (the upward pressure on prices that follows a shortage in supply.)
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A 2 percent wage increase for teachers or police officers
A. is usually offset by higher output per worker. B. leads to increases in municipal budgets. C. indicates that teachers and police have become more selfish. D. leads to more personalized service.
For network externalities to occur
A) the government has to create new laws. B) deadweight loss must be minimized. C) there must be a critical mass of users. D) there must be a positive benefit to society.
Consider a perfectly competitive market in which the firms are earning above-normal profit in the short run. In the long run, forces will come into play to
a. decrease market supply b. shift the horizontal demand curve facing each firm downward c. increase the market price d. encourage existing firms to increase output e. decrease the number of sellers in the market
Using time-series data, the demand function for a profit-maximizing monopolist has been estimated asQd = 142,000 - 500P + 6M - 400PRwhere Qd is the amount sold, P is price, M is income, and PR is the price of a related good. The estimated values for M and PR in 2014 are $25,000 and $200, respectively. The short-run marginal cost curve for this firm has been estimated as:MC = 200 - 0.024Q + 0.000006Q2Total fixed cost is forecast to be $500,000 in 2016. The forecasted demand function for 2016 is:
A. Qd = 150,000 - 2,000P B. Qd = 212,000 - 500P C. Qd = 200,000 - 2,000P D. Qd = 80,000 - 500P E. Qd = 110,000 - 500P