The long-run aggregate supply curve at potential national income is analogous to:
a. the short-run aggregate demand curve at potential national income.
b. the long-run Phillips curve at the natural rate of unemployment.
c. the long-run aggregate demand curve at each price level.
d. the short-run Phillips curve at the natural rate of unemployment.
e. the horizontal portion of the Phillips curve.
b
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An import quota protects domestic producers by
A) setting a limit on the amount of imports. B) placing a prohibitive tax on imports. C) encouraging competition among domestic producers. D) increasing the total supply of the product.
A monopoly firm selling moustache wax to vain men in a small town is currently maximizing profits by charging a price of $5. It follows that the marginal cost of moustache wax
A. is greater than $5. B. is equal to $5. C. is less than $5. D. None of these choices are true.
Which of the following accurately describes the change in equilibrium points in this graph?
a. Q2 and P2 change to Q1 and P1.
b. Q1 and P1 change to Q2 and P2.
c. Q2 and P1 change to Q1 and P2.
d. Q1 and P2 change to Q2 and P1.
If sellers expect the price of a good to rise in the future, what are they likely to do?
(A) Put more goods on the market immediately. (B) Store goods now to sell more in the future. (C) Raise their prices now. (D) Set prices according to the law of demand.