If the profit effect and misperception effect existed in both the short run and the long run, then SRAS is ____ and LRAS is ____
a. upward sloping; upward sloping
b. upward sloping: vertical
c. vertical; upward sloping
d. vertical; vertical
a
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When players are in direct competition with one another, playing a mixed strategy leads to more predictable results than playing a pure strategy
Indicate whether the statement is true or false
The feature of the above figure that indicates that the firm is a perfectly competitive firm is the
A) shape of the total cost curve. B) shape of the total revenue curve. C) fact that the total cost and total revenue curves are farthest apart at output is Q2. D) fact that the total cost and total revenue curves cross twice.
Suppose a tax on sellers has been imposed in the graph shown. Once the tax is in place, the buyers purchase ____ units and pay ____ for each one.
A. 15; $16
B. 15; $6
C. 31; $9
D. 31; $19
If the U.S. government spent $20 million paying people to dig holes in 2005 and then spent $30 million paying the same people to fill the holes up again that same year, we would expect the net effect to be a(n):
a. decrease in transfer payments b. increase in the budget deficit as transfer payments increased c. increase in the budget deficit as government purchases of goods and services increased by $50 million d. increase in the budget deficit as government purchases of goods and services increased by $30 million e. $10-million-dollar increase in the budget deficit