In the short run, the point on the aggregate demand curve where an economy will end up depends on:
A. the short-run aggregate supply curve.
B. the money supply.
C. potential output.
D. the long-run rate of inflation.
Answer: A
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Producing goods can add to net wealth, but rendering services cannot. Explain.
What will be an ideal response?
Which of the following is NOT a barrier to entry that would allow a monopolist to keep potential competitors out of its market?
A) Significant economies of scale exist. B) The market price of the product is too high. C) The firm has a patent on the good or control over some resource required for the production of the good. D) The firm has government authorization to be a monopoly.
Which of the following statements accurately characterizes American trade during the Revolutionary War?
a. The American colonies actively traded with France, Holland and Spain until 1778, when trade was hampered by British blockades. b. British blockades hampered the trade activities of first Northern and later Southern ports. c. American trade remained below pre-war levels. d. Decreases in imports led to increases in domestic production of textiles, beer and other products. e. Both b and c are correct.
The degree of wage stickiness in the real world:
A. is controversial, even among economists. B. is agreed upon by economists, but not accepted by others, like policymakers. C. is agreed upon by economists as a concept, but controversial in how it's measured. D. has been estimated by economists.