In the long run, a competitive price-searcher firm will
a. produce a greater variety of goods than do firms in other market structures
b. produce a greater output level than would a perfectly competitive firm
c. produce where price equals average total cost
d. earn an economic profit
e. suffer a loss because of its advertising budget
C
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Within the simple Keynesian Cross model, equilibrium takes place: a. at full employment
b. when aggregate spending equals real disposable income. c. when the money interest rate and real interest rate are equal. d. when actual and expected rates of inflation are equal.
If a restaurant in an integrated community has an entirely white wait-staff, economists suggest it is
A. employers who must be reacting to bigoted consumers. B. either employers discriminating for their own purposes or doing so on behalf of their bigoted customers. C. the employer who must be the bigoted party. D. most likely to be due to random chance.
Recall the Application. If the decrease in price of illegal drugs is primarily due to a change in demand, the equilibrium quantity of drugs
A) will increase. B) will decrease. C) will not change. D) may or may not change.
One economist says that raising taxes on gas would be in the social interest. What does this economist mean?
A) Higher taxes on gas would benefit society as a whole. B) Raising taxes on gas would benefit most of the people. C) Higher taxes on gas would benefit everyone. D) Both answers A and C are correct.