Government expenditures on capital goods such as roads could increase aggregate supply. Such effects on aggregate supply are likely to matter more in the short run than in the long run
a. True
b. False
Indicate whether the statement is true or false
False
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Free trade is ________, because it ________ the size of the pie available to the economy.
A. efficient; decreases B. inefficient; decreases C. inefficient; increases D. efficient; increases
Suppose that in 2012 MBI Corp. produced 100 million units of a good at an average cost of $6, and in 2013 MBI Corp. expanded its plant capacity and produced 200 million units at an average cost of $6.20. In this range, one can conclude that MBI Corp. is experiencing:
A. economies of scale. B. diseconomies of scale. C. neither economies of scale nor diseconomies of scale. D. increasing marginal product.
The phantom unemployed are
A. Discouraged and cause the unemployment statistic to understate the level of unemployment. B. Not part of the labor force because they do not desire to work. C. Unemployed and cause the unemployment statistic to overstate the level of unemployment. D. Classified as cyclically unemployed.
The demand for a product is unit elastic. At a price of $20, 10 units of a product are sold. If the price is increased to $40, then one would expect sales to equal:
a. 20 units. b. 10 units. c. 5 units. d. 0 units.