Public franchises create monopolies by restricting
A) demand.
B) prices.
C) entry.
D) profit.
C
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A decrease in interest rates caused by a change in the price level would cause a(n) ________.
A. increase (or shift right) in aggregate demand B. decrease in the quantity of real output demanded (or movement up along AD) C. increase in the quantity of real output demanded (or movement down along AD) D. decrease (or shift left) in aggregate demand
The decisions of firms and households are
A) coordinated by but not totally controlled by the government. B) made independently of one another. C) controlled by but not totally coordinated by the government. D) coordinated by markets. E) unexplainable by the circular flow model.
Which of the following is the best example of an investment in human capital?
A. on-the-job training received by an apprentice electrician B. an increase in the number of hours worked per week by a worker in an unskilled laboring job C. the purchase of company stock by a worker D. payments into a retirement pension plan by a skilled laborer
In the short run, a firm will stay in business as long as:
A. price equals average revenue. B. marginal revenue is greater than or equal to marginal cost. C. price exceeds average variable cost. D. price is less than average variable cost.