A perfectly competitive firm will shut down when the price is just below the minimum point on the
A) average fixed cost curve.
B) average total cost curve.
C) marginal cost curve.
D) average variable cost curve.
E) marginal revenue curve.
D
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A monopoly is the only seller of a product
A. without a wellminusdefined demand curve. B. with many substitutes. C. with a perfectly inelastic demand. D. without a close substitute.
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
The economy’s self-correcting mechanism tends to push the unemployment rate back to a specific rate of unemployment. How?
What will be an ideal response?
The multiplier measures the
A) number of steps it takes to move from one equilibrium to another. B) rise in saving resulting from a rise in income. C) marginal propensity to invest. D) rise in equilibrium GDP resulting from a one dollar rise in planned autonomous expenditures.