Exhibit 14A-2 Macro AD-AS Model
In Exhibit 14A- 2, the intersection of AD with SRAS indicates:
A. a short-run equilibrium.
B. a long-run equilibrium.
C. that the economy needs policies to increase unemployment.
D. that the economy is at full employment.
Answer: A
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What was the per capital income level for the United States in 2011?
a. $28,100 b. $38,100 c. $48,100 d. $58,000
If a firm faces a downward-sloping demand curve, then:
A. the firm could be either a perfectly competitive firm or an imperfectly firm. B. it is a perfectly competitive firm. C. the firm's marginal revenue from selling an additional unit of output is less than price. D. the firm's production process exhibits economies of scale.
The negative slope of the demand curve reflects the:
A. positive relationship between price and quantity. B. proportional relationship between price and quantity. C. inverse relationship between price and quantity. D. inverse relationship between income and quantity.
In a perfectly competitive market structure any firm can enter or leave the industry without serious impediments. This implies
A. firms will move labor and capital in pursuit of profit-making opportunities to whatever business venture gives them the highest return on their investment. B. consumers are able to find out about lower prices charged by other firms. C. the products sold will be alike. D. no one buyer or seller has any influence on price.