In the long run, the movement of firms into and out of a perfectly competitive market will influence price by
a. shifting the market demand curve
b. shifting the market supply curve
c. making the market supply curve less elastic
d. making the market demand curve less elastic
e. shifting the supply curve for each firm in the market
B
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The price of one good divided by the price of another good is a
A) money price. B) relative price. C) budget constraint. D) divisible good.
Based on the above, which figure shows the impact of a decrease in the population available to work?
A) Figure A B) Figure B C) Figure C D) Figure D
Good X is an inferior good but not a Giffen good. When the price of X increases, the consumer will consume
a. more X. b. the same amount of X. c. less X. d. more or less X depending on the size of the income effect relative to the size of the substitution effect.
Unemployment caused by a recession, assuming the time it takes to find a job constant, is called:
A. natural unemployment. B. frictional unemployment. C. cyclical unemployment. D. structural unemployment.