In order to sell additional units of their products, competitive firms must
A. Cut their expenses.
B. Increase their advertising.
C. Lower their price.
D. Increase output.
Answer: D
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Government purchases are part of _______ and include _______
a. national income; federal and state government purchases b. GDP; federal, state, and local government purchases c. GDP; federal government purchases only d. national income; federal government purchases only e. national income; federal, state, and local government purchases
Which of the following statements represents a correct and sequentially accurate economic explanation?
A) Wage rates rise, SRAS rises, and the SRAS curve shifts to the left. B) The prices of nonlabor inputs rise, SRAS decreases, and the SRAS curve shifts to the right. C) Labor productivity rises, SRAS increases, and the SRAS curve shifts to the right. D) An adverse supply shock hits, SRAS decreases, and the SRAS curve shifts to the right. E) a and c
The deadweight loss from monopoly exists because:
A. resource owners hired by the monopolist gain at the expense of consumers. B. the marginal benefit of the monopolist's product to society exceeds the monopolist's marginal cost. C. the monopolist produces at an output level at which no one can be made better off without making someone worse off. D. there are no net gains to society at the output level produced by a monopolist.
Using the indifference curve model, a demand for X curve is derived by allowing:
A. the price of Y to change and holding the price of X and income constant. B. income to change and holding the price of X and the price of Y constant. C. the price of X and the price of Y to change and holding income constant. D. the price of X to change and holding the price of Y and income constant.