Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C
B. Falling; A; C
C. Falling; A; B
D. Rising; A; C
Answer: D
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Tax wedge is the difference between tax induced price paid by customer and the tax amount
A. True B. False C. Uncertain
Which of the following was designed to head off panics among market participants and forestall crashes like the ones in October 1929 and October 1987?
a. Program trading b. Circuit breakers c. Derivatives d. Volatility index
Answer the question on the basis of the following information: Suppose a firm hires both labor (L) and capital (C) under purely competitive conditions. The price of labor is P L and that of capital is P C . The marginal product of labor is MP L and that
of capital is MP C . The firm sells its product competitively at a price of P X . Refer to the given information. If MP C /P C > MP L /P L , the firm: A. may be maximizing profits, but it is not minimizing costs. B. may be minimizing costs, but it is not maximizing profits. C. is neither minimizing costs nor maximizing profits. D. is minimizing costs and maximizing profits.
If supply of a product increases and demand for the product decreases, equilibrium quantity will definitely change.
Answer the following statement true (T) or false (F)