If the economy is represented in the graph shown and is currently at point E1, then the economy must be in:
A. long-run equilibrium.
B. a recession.
C. an economic boom.
D. an economic recovery.
A. long-run equilibrium.
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The following are impediments to economic growth EXCEPT
A) dead capital. B) increased education. C) lack of economic freedom. D) bureaucratic inefficiency.
How does advertising influence the demand for goods and the shape of the demand curve?
What will be an ideal response?
When considering marginal revenue for the monopolist, which of the following is FALSE?
A) To sell more of a particular product, given the industry demand curve, the monopoly firm must lower the price. B) An essential point for the monopolist, marginal revenue is always less than price. C) Marginal revenue is always less than price because price must be reduced on all units to sell more. D) The more the monopolist wants to sell, the higher the price it has to charge in order to make more profits.
Which of the following statements about absolute and comparative advantage is not true? A country may have:
A. neither absolute nor comparative advantage in the production of any goods. B. an absolute advantage but not a comparative advantage in the production of a good C. the absolute advantage in the production of all goods. D. a comparative advantage but not an absolute advantage in the production of a good.