If the demand in a perfectly competitive market decreases, the price will:
A. temporarily increase.
B. temporarily decrease.
C. increase permanently.
D. decrease permanently.
B. temporarily decrease.
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Suppose the production function for T-shirts can be represented as q = L0.25K0.75. Show that the isoquants for this function are convex
What will be an ideal response?
The percentage of births to unwed mothers has been rising at a faster rate for whites than for blacks since 1960
Indicate whether the statement is true or false
If aggregate demand turns out to be higher than what was anticipated in an economy, then:
a. the economy experiences a contractionary gap. b. the short-run equilibrium occurs at the potential output. c. the short-run equilibrium occurs at an output level lower than potential output. d. the short-run equilibrium occurs at an output level higher than potential output.
What is the central role of financial intermediaries in a market economy?
A) the creation and printing of money B) keeping the price level stable C) bringing together savers and borrowers D) providing safe deposit boxes for people and businesses