An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply.
B. increase in aggregate demand.
C. increase in short-run aggregate supply.
D. decrease in aggregate demand.
Answer: D
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Which of the following would shift the production possibilities frontier outward?
a. an increase in the size of the labor force b. more efficient use of existing resources and technology c. the government prints more money d. the end of a strike by a labor union e. society's desire to produce more of one of the goods
Since it is costly for stockholders to monitor corporate managers, managers may be able to achieve personal perks and pursue other policies that conflict with profit maximization. This is an example of
a. an external benefit. b. economies of scale. c. the principal-agent problem. d. sunk costs.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. $12 of surplus gets transferred from consumers to producers. B. area (C + E) is deadweight loss. C. area B is transferred surplus from consumers to producers. D. All of these are true.
Economics is the study of the efficient use of scarce resources to achieve maximum satisfaction of economic wants.
Answer the following statement true (T) or false (F)