If actual output equals potential output, ________ shifts upward over time.
A. neither the short-run AS curve nor the short-run AD curve
B. the short-run AD curve
C. the short-run AS curve
D. the long-run AD curve
Answer: A
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Which of the following is true about the long run operations of perfectly competitive firms? a. They produce with productive efficiency. b. They produce with allocative efficiency. c. They earn zero economic profits
d. all of the above
The fallacy of composition states that even if something is true for an individual, it is not necessarily true for many individuals as a group
a. True b. False Indicate whether the statement is true or false
When there is only a weak link between work effort and reward
a. individuals will undertake fewer projects that create income. b. taxing the rich and distributing the money to the poor becomes the best way to increase the size of the economic pie. c. corporations will profit more. d. individuals have a strong incentive to undertake projects that generate income.
Economists use the term ______ to refer to the ability to produce a good at a lower opportunity cost than another producer
Fill in the blank(s) with correct word