The nominal cost per unit of output rises when production is pushed beyond an economy's potential output
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
Of the following, which good has the most elastic demand?
A) food B) breakfast food C) cereal D) Post Raisin Bran E) Post Raisin Brand purchased at a Safeway grocery store
If a firm in a competitive industry is making zero economic profit but still producing, it must be the case that:
a. MC = MR > ATC. b. MC = MR < ATC. c. MC = ATC > MR. d. MC = MR = ATC. e. this situation is not possible.
Following a decline in the inflation rate, once long-term wage contracts are renegotiated and all prices in the economy adjust to their new equilibrium:
a. the economy will move up the short-run Phillips curve. b. the short-run Phillips curve will shift to the left. c. the economy will return to the vertical Phillips curve. d. the aggregate supply curve will shift to the right. e. the aggregate demand curve will shift to the right.
Price floors are typically imposed to benefit buyers
a. True b. False Indicate whether the statement is true or false