In the short-run:
a. All costs are variable
b. Some costs are fixed and some costs are variable
c. There are no fixed inputs
d. The firm is not constrained to vary output
b
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Refer to Scenario 2.2. Under what circumstances will the equilibrium level of output of dental care increase?
A) If supply shifts more than demand. B) If demand shifts more than supply. C) If both demand and supply shift by the same magnitude. D) If supply and demand both decrease.
An increase in the actual price level does not shift the short-run aggregate supply curve, but an expected increase in the price level shifts the short-run aggregate supply curve to the left
a. True b. False Indicate whether the statement is true or false
When a consumer is purchasing the best combination of two goods, X and Y, subject to a budget constraint, we say that the consumer is at an optimal choice point. A graph of an optimal choice point shows that it occurs
a. along the highest attainable indifference curve. b. where the indifference curve is tangent to the budget constraint. c. where the marginal utility per dollar spent is the same for both X and Y. d. All of the above are correct.
Which of the following statements is not true?
A. The duration of unemployment increases during recessions. B. The duration of unemployment increases during economic expansions. C. The unemployment rate plus the employment rate equals 100% of the labor force. D. The unemployment rate does not tell us anything about the duration of unemployment.