If the supply of a product decreases by more than the demand increases:
a. the price will rise and the quantity traded will fall
b. the price will rise, but the quantity traded could either rise or fall.
c. the price will fall, but the quantity traded could either rise or fall.
d. the quantity traded will rise, but the price could either rise or fall.
a
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The supply of labor curve is
A) vertical at potential GDP. B) upward sloping. C) downward sloping. D) horizontal at the equilibrium wage rate.
Returns to scale describes the long-run relationship between:
A. the quantity of input and the average variable cost. B. the quantity of output and the average variable cost. C. the quantity of input and the average total cost. D. the quantity of output and average total cost.
Why is the long-run average total cost (LRATC) curve called the planning curve?
The statement that "at 10 percent, the interest rate is too high for families to buy a home they could have afforded when the interest rate was below 7 percent ," is a(n)
a. positive statement b. normative statement c. morally ambiguous philosophical position d. affront to the American dream e. value judgment