_____ refers to the ways in which a change in the price of a good alters the effective buying power of one's income
a. Wealth effect
b. Alternative effect
c. Income effect
d. Substitution effect
c
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In the long-run ISLM model and with everything else held constant, the long-run effect of a contractionary fiscal policy is to ________ real output and ________ the interest rate
A) not change; not change B) decrease; decrease C) decrease; not change D) not change; decrease
Another term for an investment good is
a. interest b. savings c. capital d. rent e. production
The only item which would be consistent with a decreased likelihood of cartel formation for production of a product is
a. patent protection b. price inelastic demand c. many producers d. income elastic demand e. limited market entrance
In the long run under monopoly,
a. the MC curve will lie to the left of the output at which AC and AR meet. b. MC = MR = P. c. MC = MR = AR. d. the MC curve will lie to the right of the output at which AC and AR meet.