On a production possibilities curve diagram, greater entrepreneurship:
A. causes the curve to shift outward.
B. keeps the economy on the curve.
C. prevents movement along the curve.
D. keeps the economy at the corners of the curve.
Answer: A
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If firms in monopolistic competition are earning economic profits, then
A) they can expect to earn the profits indefinitely. B) new rivals enter the industry, and the demand for any seller's good decreases. C) the market demand becomes more inelastic. D) the industry is in long-run equilibrium. E) new rivals enter the industry, and the demand for any seller's good increases.
One major consequence of the federal government's deregulation of the trucking industry was
A) a sudden and large financial loss for owners of trucking firms. B) fewer jobs for truck drivers. C) higher prices paid by shippers. D) less competition for railroads and barge lines. E) predatory pricing in the trucking industry.
Refer to Figure 16-12. An increase in government purchases of $200 billion causes aggregate demand to shift ultimately from AD1 to AD2
Assuming a constant price level, the difference in real GDP between point A and point B will be ________ $200 billion. A) less than B) greater than C) equal to D) There is insufficient information given here to draw a conclusion.
Commitment devices can be:
A. a way to use choice architecture to help you avoid temptation. B. formal policies or products. C. a way for people to voluntarily restrict their choices in order to make it easier to stick to plans. D. All of these statements are true.