For a monopolist with a downward-sloping demand curve, the quantity effect dominates the price effect at:
A. low levels of production.
B.high levels of production.
C. levels at which elasticity is unit-elastic.
D. all levels of production.
A. low levels of production.
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The short-run aggregate supply curve shifts because of changes in all of the following EXCEPT
A) the capital stock. B) technological progress. C) money wage rates. D) the price level.
The opportunity cost of being unemployed tends to be the highest in which of the following countries?
A) Canada B) France C) the United Kingdom D) the United States
Ceteris paribus, in the long run, a negative supply shock causes
A) the long-run aggregate supply curve to shift to the left. B) unemployment to fall below its short-run level. C) equilibrium real GDP to fall. D) the price level to rise initially, and then return to its lower level.
If the moral hazard problem in automobile driving were to be eliminated, the marginal cost of driving would be
A) lowered enough to pull the amount of driving back down to the efficient level. B) lowered enough to raise the amount of driving back up to the efficient level. C) raised enough to pull the amount of driving back down to the efficient level. D) raised enough to raise the amount of driving back up to the efficient level. E) lowered back down to the efficient level, relieving the stress on market forces.