A surplus of shoes will cause
a. a decrease in the supply of shoes
b. a decrease in the demand for shoes
c. both a decrease in the supply of shoes and an increase in the demand for shoes
d. a decrease in the price of shoes, through a shift of either the supply curve or the demand curve
e. a decrease in the price of shoes
E
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The short-run supply curve of a perfectly competitive firm is based primarily on its
A. MC curve. B. AVC curve. C. AFC curve. D. ATC curve.
Which of the following is true of the market for labor?
A) Workers are the suppliers of labor. B) Workers are the demanders of labor. C) The labor supply curve is perfectly elastic. D) The labor demand curve is perfectly elastic.
In the figure above, the economy is at point A when the price level rises to 120. Money wage rates and other resource prices remain constant. Firms are willing to supply output equal to
A) $15.5 trillion. B) $16.0 trillion. C) $16.5 trillion. D) None of the above answers is correct.
Inflation affects borrowers and lenders differently. After signing a contract with a fixed nominal interest rate, it can be expected that
a. borrowers will hope that prices fall. b. lenders will hope that prices rise. c. lenders will hope that the purchasing power of money will fall. d. borrowers will hope that prices rise.