Refer to Figure 3-4. If the current market price is $25, the market will achieve equilibrium by
A) a price decrease, decreasing the supply and increasing the demand.
B) a price increase, increasing the quantity supplied and decreasing the quantity demanded.
C) a price decrease, decreasing the quantity supplied and increasing the quantity demanded.
D) a price increase, increasing the supply and decreasing the demand.
C
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Real business cycle theory emphasizes the role of ________ in causing economic fluctuations
A) agriculture B) technological change C) natural disasters D) wars
Over the past year, productivity grew 1%, capital grew 2%, and labor grew 2%. If the elasticities of output with respect to capital and labor are 0.3 and 0.7, respectively, how much did output grow?
A) 1% B) 2% C) 3% D) 4%
Equilibrium in the money market would be expressed by which of the following?
A. Md = (1/V)P B. Ms = (1/V)Y C. Ms = Md D. Ms = (1/V)P
Which of the following is a characteristic of a natural monopoly?
a. Average cost exceeds marginal cost over large regions of output. b. Increasing the number of firms increases each firm's average total cost. c. One firm can supply output at a lower cost than two firms. d. All of the above are correct.