The short-run supply curve for a competitive firm is the:
A. segment of the AVC curve lying to the right of the MC curve.
B. segment of the MC curve lying above the AVC curve.
C. entire MC curve.
D. segment of the MC curve lying below the AVC curve.
Answer: B
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If firms' inventories exceed their planned inventories, firms
A) increase employment. B) increase GDP. C) increase production. D) increase income. E) decrease production.
When considering the factor distribution of income, into whose income would corporate profits be included?
A. Owners of physical capital B. Owners of human capital C. Proprietors D. Workers.
Which of the following would cause prices to fall and output to rise in the short run?
a. Short-run aggregate supply shifts right. b. Short-run aggregate supply shifts left. c. Aggregate demand shifts right. d. Aggregate demand shifts left.
Which one of the following is an example of a normative statement?
A) A vacation in Colorado is better than a vacation in Hawaii. B) Hotels in Colorado are more expensive than are hotels in Hawaii. C) The hotel vacancy rate in Hawaii will increase as airfares to Hawaii increase. D) The busiest tourist month in Colorado is July.