Refer to the graph below. If Qf is potential GDP, wages and prices are flexible, then the long-run aggregate supply curve will be:
A. AS2
B. AS1
C. A vertical line at Qf
D. A vertical line at Q1
C. A vertical line at Qf
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Use the following graphs to answer the next question.
The long-run equilibrium for a monopolistically competitive firm is represented by graph
A. A. B. B. C. C. D. D.
The assumption that individuals do NOT intentionally make decisions that would leave them worse off is referred to as
A) the premium assumption. B) the law of comparative advantage. C) the rationality assumption. D) the law of demand.
You are more likely to do-it-yourself than hire a plumber to repair a leaky drain pipe
a. as the tax rate on your earned income dramatically decreases b. if the opportunity cost of your time decreases c. the less knowledge and experience in plumbing repair work that you possess d. if you already own the specialized tools required to complete the repair work e. as the transaction cost of the do-it-yourself repair work increases
During your foreign travel in South Asia, you acquired an expensive, elaborately woven textile, size 1 meter by 2 meters. At customs as you are returning to your home, the official asks if it is a rug or a decorative wall hanging. What do you reply?