Suppose that entry of new firms into an industry significantly increases the market demand for a key input. If supply of the key input is very price inelastic, then, for each firm in the industry in the long run,
a. external diseconomies shift its entire ATC curve upward
b. external economies shift its entire ATC curve downward
c. external diseconomies move it to the left along its original ATC curve
d. diseconomies of scale shift its entire ATC curve upward
e. economies of scale shift its entire ATC curve downward
A
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The most comprehensive measure of aggregate output is
A) gross domestic product. B) net national product. C) the stock value of the industrial 500. D) national income.
Marginal product measures the change in:
a. total cost brought about by changing production by one unit. b. product price brought about by changing production by one unit. c. a firm's revenue brought about by changing production by one unit. d. the firm's output brought about by employing one additional unit of input. e. the firm's profit brought about by employing one more input.
Tranching makes it so that packages of reliable, low-risk mortgages could be sold to ______________, while higher-risk subprime mortgages could be sold to ___________.
A. more risk-averse investors; risk-loving investors B. more risk-loving investors; risk-averse investors C. national banks; local banks D. local banks; the government
Once the expenditure schedule has been adjusted for tax levels, the determination of equilibrium GDP
a. is no longer possible. b. becomes much more difficult. c. proceeds exactly as before. d. requires a higher multiplier value.