If firms enter a purely competitive industry, then in the long run this change will shift the industry:
A. demand curve to the right, and the market price will increase.
B. supply curve to the left, and the market price will increase.
C. demand curve to the left, and the market price will decrease.
D. supply curve to the right, and the market price will decrease.
Answer: D
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A) you can use the J-statistic in a test of overidentifying restrictions. B) you cannot use TSLS for estimation purposes. C) you must rely on your personal knowledge of the empirical problem at hand to assess whether the instruments are exogenous. D) OLS and TSLS yield the same estimate.
The central bank of the United States is the
a. Federal Reserve Banking System b. First National Bank c. Comptroller's Bank d. United States National Bank e. U.S. Treasury Bank
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Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P4 and Y1. B. P4 and Y2. C. P5 and Y1. D. P5 and Y2.