Increases in the burdens of government regulations can make production more costly for producers, shifting the short run aggregate supply curve left; it can also reduce potential output, shifting the long-run aggregate supply curve left
a. True
b. False
Indicate whether the statement is true or false
True
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Valuing the quantities of goods produced in consecutive years using prices in both years and then averaging the percentage changes in the value of output is part of the ________ method of calculating real GDP
A) base-year B) moving-base-year C) chain-weighted output index D) fixed quantities/variable prices
A perfectly competitive firm spends a significant part of its revenue on advertisements, and tries to sell more by reducing its price below the market price
a. True b. False Indicate whether the statement is true or false
When can a seller's investment in reducing transaction cost increase the price of the product to customers but still leave them better off?
Suppose Fernando allocates his lunch money to pizza and Coke. A Coke costs $1 and a slice of pizza costs $1.50 . The marginal utility of the last slice of pizza Fernando ate was 30, and the marginal utility of his last Coke was 25 . Fernando spent all of his lunch money. From this information, we can conclude that
a. Fernando allocated his money in a way that maximized his total utility b. Fernando's total utility would have been higher if he had purchased more Coke and less pizza c. Fernando's total utility would have been higher if he had purchased more pizza and less Coke d. Fernando could have increased his total utility by purchasing more Coke but the same quantity of pizza e. Fernando could have increased his total utility by purchasing more pizza but the same quantity of Coke