Refer to Figure 27-1. Suppose the economy is in short-run equilibrium above potential GDP and no policy is pursued. Using the static AD-AS model in the figure above, this would be depicted as a movement from
A) D to C. B) C to D. C) E to A. D) C to B. E) A to E.
B
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In order for you to consider steak and lobster to be perfect substitutes, their prices per pound must be identical
Indicate whether the statement is true or false
Which of the following will result in an outward shift of the production possibilities curve [PPC]?
a. A decrease in the quantity of resources b. An improvement in the quality of resources c. A fall in education standards d. An unsustainable growth in population e. An increase in unemployment rate
A monopsonist is a
A. firm that is the single purchaser of a factor of production. B. firm with partial control over an industry. C. firm operating in a regulated industry. D. group of firms, much like a cartel, that restricts the demand for labor in a market. E. firm that competes for labor but sells its output in a noncompetitive market.
All of the following are income in kind EXCEPT
A) government provided housing. B) government provided education. C) tips received by a waitress. D) goods produced in the home.