In the short run, a negative demand shock will
a. decrease the price level but leave real GDP unchanged
b. increase the price level but leave real GDP unchanged
c. decrease both the price level and real GDP
d. increase the price level and decrease real GDP
e. decrease the wage rate
C
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Allocative efficiency is achieved when firms produce goods and services
A) that consumers value most. B) at a marginal cost of zero. C) at the lowest possible cost. D) at the lowest opportunity cost.
The Cauchy-Schwartz inequality implies that the asymptotic variance of?
is:
A. ?greater than 
.
B. ?less than or equal to .
C. ?equal to .
D. ?less than .
If Panera Bread's "clean food" strategy succeeds and customers are willing to pay higher prices for their menu items, the company will
A) no longer be monopolistically competitive. B) continue to earn substantial economic profits in the long run. C) eventually suffer economic losses, as do all fast-casual restaurants. D) likely attract competitors that offer the same kind of food, and all else equal, eventually economic profits will be competed away.
We assume an upward sloping supply curve because:
A. the income effect tends to dominate labor-supply decisions in the real world. B. it makes better theoretical sense that the price effect would dominate. C. it makes better theoretical sense that the income effect would dominate. D. the price effect tends to dominate labor-supply decisions in the real world.