Refer to Figure 13-3. Suppose the economy is at point A. If investment spending increases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
C
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Recent housing reforms in Cuba should give homeowners ________ incentives to repair their homes and therefore ________ construction of new homes
A) more; decrease B) fewer; increase C) fewer; decrease D) more; increase
Consider the monopsony in the above figure. The monopsony will hire ________ hours per week
A) 200 B) 400 C) 600 D) None of the above answers is correct.
Refer to Figure 13-13. If the diagram represents a typical firm in the market, what is likely to happen to its average cost of production in the long run?
A) It will probably fall since the firm must be cost efficient to remain competitive. B) It will probably rise since the firm will be producing less than its current amount. C) It will probably rise since its long-run demand is likely to be higher. D) It will probably fall since the firm will be selling less than its current amount.
From an economist's point of view, zero pollution is always preferable to some pollution.
Answer the following statement true (T) or false (F)