Long-run economic growth is consistent with:
A. Expanding the aggregate demand curve.
B. Expanding the production possibilities curve.
C. An increase in government spending.
D. An increase in GDP per capita.
B. Expanding the production possibilities curve.
You might also like to view...
Equilibrium market prices for capital and labor are $10 and $8, respectively. Then, the economy experiences one or more supply shocks, so that the marginal product of capital is $12, and the marginal product of labor is $9
Assuming that the available quantities of capital and labor are fixed, which of the following is (are) likely to decrease as the economy approaches its new equilibrium? A) real rental price of capital B) total output C) economic profits D) the quantity of capital in use E) none of the above
Which of the following statements is true? a. Economic profits ignore implicit costs
b. Economic profits include implicit costs. c. Accounting profits include all of the opportunity costs. d. Economists consider sunk costs in their decision making.
When a service, such as medical care, is provided free of charge,
a. most people consume an infinite amount of it b. most people do not much care about getting good value for their money c. people do not derive any consumer surplus from it d. we say that the demand for it is perfectly elastic e. we say that the demand for it is perfectly inelastic
In the long run, firms in a monopolistically competitive market operate at:
A. an efficient scale. B. a less-than-efficient scale. C. a more-than-efficient scale. D. Any of these could be true, depending on the individual firm.