The demand for orthodontists' services falls as the proportion of the population that obtains braces falls. It may take several years before the new long-run equilibrium for the orthodontic labor market is attained. In the meantime, the orthodontic labor
market experiences a
A) shortage.
B) quality decrease.
C) surplus.
D) excess demand.
Answer: C
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Economic depreciation is the
A) firm's opportunity cost of using its own capital. B) change in the market value of capital over a given period. C) return that an entrepreneur can expect to receive on average. D) forgone return on the funds used to buy capital.
The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 200 + 5Q. What is the variable cost?
A) 200 B) 5Q C) 5 D) 5 + (200/Q) E) none of the above
Suppose the economy is in long-run equilibrium. In a short span of time, there is a sharp increase in the supply of labor, a major new discovery of oil, and new environmental regulations that raise the cost of electricity production. In the short run
a. the price level will rise and real GDP will fall. b. the price level will fall and real GDP will rise. c. the price level and real GDP will both stay the same. d. All of the above are possible.
The most likely impact of an effective price floor is:
A. the demand curve will shift to the left. B. a shortage will develop. C. a surplus will develop. D. the supply curve will shift to the right.