The demand for a product produced in a perfectly competitive market permanently increases. In the short run, the price
A) rises and each firm produces less output.
B) rises and each firm produces more output.
C) does not change as new firms enter the industry.
D) does not change because each firm produces more output.
B
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A trade-off between unemployment and inflation is reflected in the
A) economic stability. B) nonaccelerating inflation rate of unemployment (NAIRU). C) natural rate of unemployment. D) Phillips Curve.
An unexpected reduction in inflation would tend to benefit which of the following?
A) creditors B) debtors C) creditors and debtors D) neither creditors nor debtors
When resources are used efficiently, you can produce more of one good, ceteris paribus, only by: a. printing more money
b. charging a lower price for output. c. charging a higher price for output. d. producing less of another good.
Which of the following would be classified as an innovation?
a. Edwin H. Land perfects the single-step photographic process in 1947. b. Polaroid markets the single-step film in 1948. c. Thomas Alva Edison perfects the incandescent lamp with carbon filament in 1879. d. In 1803, Robert Fulton constructs his first small steamboat in Paris.