An increase in wages will cause the aggregate supply curve to
a. shift outward.
b. shift inward.
c. become flatter.
d. become steeper.
b
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Time-series forecasting models:
a. are useful whenever changes occur rapidly and wildly b. are more effective in making long-run forecasts than short-run forecasts c. are based solely on historical observations of the values of the variable being forecasted d. attempt to explain the underlying causal relationships which produce the observed outcome e. none of the above
The Taxpayer Relief Act of 1997 created the Hope Higher Education Scholarship program which provides a maximum of $1,500 in tax credits for the first two years of college for families with adjusted-gross incomes of less than $100,000 . What effect do you think this act might have on the aggregate supply curve?
Advertising can enhance economic efficiency when it:
A. increases brand loyalty. B. expands sales such that firms achieve substantial economies of scale. C. keeps new firms from entering profitable industries. D. is undertaken by pure competitors.
Which of the following statements regarding accounting and economic profits is FALSE?
A. Economic profits = total revenue - (explicit + implicit costs) B. Economic profits can be zero even if accounting profits are positive. C. Accounting profits can be negative if economic profits are positive. D. Accounting profits = total revenue - explicit costs