The curve labeled A in the above figure will shift rightward when
A) the price level falls.
B) technology increases.
C) population falls.
D) the price level rises.
B
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A characteristic of an efficient market is that
A) prices are equal for all securities. B) bid-asked spreads are large. C) prices reflect all available information. D) all investors receive a positive rate of return.
The above figure shows the market for crude oil. If a consumer group convinces the government to set a maximum price of $2 per barrel, then
A) 300 barrels of crude oil will be sold at $2. B) zero barrels of crude oil will be sold. C) zero barrels of crude oil will be demanded. D) None of the above.
Economists assume maximizing efficiency over other goals:
A. is a guiding principle of policy-making. B. is always the best approach. C. should never be followed. D. may not bring about the best outcome for society.
Table 21.2Output (units per day)0102030Total cost (dollars per day)$40$54$62$80Above 10 units of output, the average fixed cost in Table 21.2
A. Rises above $2.00. B. Remains constant. C. Continues to decline. D. Stays below $0.50.