Assume a purely competitive constant-cost industry is initially at long-run equilibrium. Now suppose that a decrease in consumer demand occurs. After all the long-run adjustments have been completed, the new equilibrium price:
A. And industry output will be less than the initial price and output
B. Will be the same as the initial price, and the output will be less
C. Will be greater than the initial, but the new output will be less
D. Will be less than the initial price, but the new output will be greater
B. Will be the same as the initial price, and the output will be less
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Since 1960
A) in every decade, Japan has experienced faster growth than the United States. B) growth rates in South American countries have exceeded those in North America. C) real GDP per person in Hong Kong and Singapore have grown and are approaching or surpassing that in the United States. D) due to rapid growth, real GDP per person in China is now about 50 percent of that in the United States.
During periods of inflation:
a. everyone's real income rises. b. those people who have fixed incomes benefit. c. those people whose nominal income rises faster than the general price level benefit. d. those people who enter long-term wage agreements benefit. e. those people who hold a lot of cash benefit.
Hiring a sports celebrity to advertise a car dealership is a way of:
A. a waste of the dealership's money because celebrities aren't car experts. B. statistically discriminates potential buyers who like sports. C. screening those who aren't willing to pay as much for a car. D. signaling the quality of the cars because it is costly to hire that celebrity.
Households
A) purchase final goods and services in the factor market. B) purchase final goods and services in the product market. C) purchase resources in the product market. D) purchase resources in the factor market.