If the long-run supply curve is upward sloping, we know that
A. some input prices are increasing as the industry expands.
B. the law of diminishing marginal returns has set in.
C. entrepreneurs are earning higher profits as output expands.
D. firms are getting larger as the industry contracts.
Answer: A
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An increase in the level of real GDP in the economy leads to
A) a leftward shift in the demand for money curve. B) a rightward shift in the demand for money curve. C) a leftward movement along the demand for money curve. D) a rightward movement along the demand for money curve.
If you have a checking account at a local bank, your bank account there is a(n)
A. asset to the bank and an asset to you. B. liability of the bank and a liability of yours. C. liability of the bank and an asset to you. D. asset to the bank and a liability of yours.
Refer to Figure 10.3. What is the competitive price?
A) P1 B) P2 C) P3 D) P4 E) P5
Means-tested government programs tend to reduce saving. What are means-tested programs and how do they reduce saving?