A constant-cost industry is one in which:
A. input prices do not change as output changes in the long run.
B. supply is highly inelastic.
C. the short-run supply curve is horizontal.
D. All of these
Answer: A
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A craze for apples in Riverdale increases the quantity demanded at every price by five bushels. Between any two prices, the new demand curve will be ____ the old demand curve.
A. more elastic than B. less elastic than C. equal in elasticity to D. More information is needed to predict the relationship.
Along the aggregate supply curve
A) the horizontal part represents a situation where the economy is operating above full employment levels. B) inflation would be a primary concern along the horizontal part of the aggregate supply curve. C) idle resources, such as labor and capital, would be a feature of the vertical section of the aggregate supply curve. D) the horizontal section of the aggregate supply curve represents the limit of production. E) the middle, upward-sloping part of the aggregate supply curve would be associated with a growing economy that experienced increased prices from resources that are becoming relatively scarce.
The Tax Reform Act of 1986 was concerned with _____
a. fiscal stabilization b. macroeconomic policy c. equity considerations d. efficiency considerations
The creation of the Social Security program had no impact on the labor force participation rate because people are not interested in working past the age of 65.
Answer the following statement true (T) or false (F)