Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y2.
C. P3 and Y1.
D. P2 and Y3.
Answer: D
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A patent or copyright is a barrier to entry based on
A) widespread network externalities. B) ownership of a key necessary raw material. C) large economies of scale as output increases. D) government action to protect a producer.
Which of the following would not be considered a negative externality?
a. loud rap music at 2 a.m. in the apartment next door to you b. traffic congestion c. an Alaskan oil spill d. measles vaccinations e. air pollution
When a $500 check is cleared from Bank A to Bank B, the M2 money supply:
a. Increases permanently. b. Falls permanently. c. Does not change.
Which of the following restrictions implies that saving and investment are equal for a closed economy?
a. Private saving is equal to zero. b. Public saving is equal to zero. c. The economy's government is running neither a surplus nor a deficit. d. No restriction is necessary; saving and investment are equal for all closed economies.