In the long run, one-time increases or decreases in the nominal money supply affect
A) real output, but not the price level.
B) the price level, but not real output.
C) both real output and the price level.
D) neither real output nor the price level.
B
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For a natural monopoly, long-run average costs
A) fall as output increases. B) rise as output increases. C) fall as output falls. D) rise as output falls.
If the liberum veto is used in a policy-making setting, it means:
A. it is easy to halt policies, because only one person needs to be bribed to stop them. B. that government is an easy target for an area to become corrupt or taken advantage of. C. complete consensus is needed for legislation to pass. D. All of these are true.
If a firm faces perfectly competitive product and factor markets and the marginal product of labor and capital are 4 and 9, respectively, while the wage rate is $2 and the rental rate on capital is $4, the firm should
A) use relatively more labor. B) use relatively less labor. C) increase all inputs proportionately. D) decrease all inputs proportionately.
Refer to the graph shown.
As a result of a tariff T imposed on speedboats, the price domestic consumers pay for speedboats probably will likely be:
A. P1. B. P2. C. P3. D. P4.