Inventories help manufacturers cope with unexpected changes in the supply of their resources or in the demand for their products
a. True
b. False
Indicate whether the statement is true or false
True
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Suppose the average price of gasoline in the United States rose from $3 per gallon to $4 per gallon. Accompanying the increase in gas prices was a decrease in new automobile sales
Other things equal, if this trend continues, real GDP would likely ________ and the output gap would become ________. A) rise; more negative B) rise; less negative C) fall; more negative D) fall; less negative
In a long-run equilibrium in a monopolistically competitive industry that produces information products, revenues are equal to the ________ costs of developing, producing, and selling the product
A) total B) fixed C) variable D) marginal
In which decade did the U.S. federal government first establish a system of agricultural price supports?
A. 1970s B. 1930s C. 1950s D. 2000s
A law that restricts plant closings will
A) make the economy more efficient by slowing down the movement of resources to a more optimal rate. B) make the economy more efficient by reducing poor decisions on the part of entrepreneurs. C) prevent resources from flowing to their highest-valued uses. D) provide useful market signals to all parties in the industry.