If costs decrease, what happens to the aggregate supply curve?
What will be an ideal response?
It shifts rightward.
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When economists say that an activity meets the criterion for economic efficiency, they mean
a. a majority of citizens favor the activity. b. the benefits that result from the activity exceed the costs. c. the number of people who gain from the activity exceeds the number on whom costs are imposed. d. the costs that result from the activity exceed the benefits.
Repeated play can change the outcome in sequential games by:
A. reducing the first-mover advantage. B. making collusion more probable. C. removing the incentive to cooperate. D. increasing the incentive to defect.
Refer to the graph shown. Areas C and D represent:
A. the loss of surplus by producers resulting from a monopoly. B. consumer surplus redistributed to the monopolist. C. the cost to society of increasing output from Qm to Qc. D. the loss of surplus by consumers resulting from a monopoly.
If the price elasticity of supply is 1, supply is:
A. unaffected by price changes. B. inelastic. C. unit elastic. D. elastic.