As more firms enter a perfectly competitive industry, the industry supply curve shifts
a. to the left and price falls
b. to the right and price rises
c. to the right and price falls
d. to the left and price rises
e. in an unpredictable way
C
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When economists talk about supply, they are referring to a relationship between price received for each unit sold and the _________________.
A. demand schedule B. market price C. quantity supplied D. demand curve
The Solow model is distinct from the Romer model in that an increase in population tends to cause ________
A) a permanent decrease in the standard of living in the Romer model B) an increase in spillover effects in the Solow model, but not in the Romer model C) a permanent increase in the standard of living in the Solow model D) a permanent increase in the standard of living in the Romer model
Answer the following statement true (T) or false (F)
1) An increase in demand accompanied by an increase in supply will increase the equilibrium quantity, but the effect on equilibrium price will be indeterminate. 2) A government subsidy per unit of output increases supply. 3) Consumers buy more of normal goods as their incomes rise. 4) Toothpaste and toothbrushes are substitute goods.
Suppose policy makers underestimate the natural rate of unemployment. In situations like these, policy makers will likely implement policies that result in
A) more unemployment than necessary. B) an unemployment rate that is "too high." C) a higher inflation rate than necessary. D) a steadily decreasing inflation rate. E) overly contractionary monetary and fiscal policy.