Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. If price goes from equilibrium to P1, producer surplus changes by the area
A. C + E
B. E - C.
C. B - F.
D. E + F.
Answer: D
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One result of an unanticipated reduction in aggregate demand would be that
A) fewer firms would be hiring. B) more firms would be hiring. C) there would be no change in hiring. D) the price level would rise.
There can be no shortages or surpluses at the equilibrium price.
a. true b. false
Critics of economic growth say that it will deplete economic resources.
Answer the following statement true (T) or false (F)
If a firm experiences constant returns to the variable input in the short run:
A) marginal product will be greater than average variable product, but the two will become more equal as output increases. B) marginal product will be less than average variable product, but the two will become more equal as output increases. C) marginal product will be greater than average variable product, and the difference between the two will become larger as output increases. D) marginal product and average variable product will be equal over the range of output in question.