If foreign input prices increase and the United States is a purchaser of those inputs, then the U.S
A) AD curve will shift leftward and U.S. prices will fall.
B) AD curve will shift rightward and U.S. prices will rise.
C) SRAS curve will shift leftward and U.S. prices will rise.
D) SRAS curve will shift rightward and U.S. prices will fall
C
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Monopolistic competition is characterized by excess capacity because
A. firms charge a price that is greater than marginal cost. B. firms produce at an output level less than the least-cost output. C. firms are always profitable in the long run. D. the demand for a product is perfectly elastic in this type of industry.
The price of good X is $2.00 and the price of good Y is $1.00. Last year, the price of good X was $1.00 and the price of good Y was $2.00. If a consumer has $100, draw there their budget line for each year (label them accordingly). Add as many indifference curves as needed to show a situation in which the consumer is no better or worse off this year than they were last year. Be sure to label their optimal baskets for both years. Explain why what you have drawn is correct.
What will be an ideal response?
Refer to Table 2-2. Assume Billie's Bedroom Shop only produces pillows and blankets. Billie faces ________ opportunity costs in the production of pillows and blankets
A) negative B) constant C) decreasing D) increasing
Full employment is the rate of employment that results when
a. all labor resources of an economy are employed. b. there is efficient use of the labor force, with allowance made for normal unemployment due to dynamic changes and the structural conditions of the economy. c. cyclical unemployment is between 4 and 5 percent of the labor force. d. everybody who wants a job can find one.