A decrease in the price level accompanied by no change in the money wage rate leads to ________ movement along the ________ aggregate supply curve
A) a downward; short-run
B) an upward; short-run
C) a downward; long-run
D) an upward; long-run
A
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A business owned by two or more joint owners, or partners, who share the responsibilities and the profits of the firm and are individually liable for all the debts is a(n)
A) corporation. B) entrepreneur. C) proprietorship. D) partnership.
The theory of bounded rationality, based on rules of thumb such as "the value of a product is indicated by its price," may result in:
A. diminishing marginal utility. B. an upward-sloping supply curve. C. an upward-sloping demand curve. D. constant marginal utility.
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
Which of the following is a long-run adjustment?
A. A firm hires two new workers. B. The number of professional baseball teams increases by two. C. GM buys more steel for its auto plants in Michigan. D. A farmer buys twice the usual amount of fertilizer.