Short-run fluctuations in output and employment are referred to as
A.
Economic growth
B.
Business cycles
C.
Inventory cycles
D.
Recession and inflation
A. Short-run fluctuations in output and employment are referred to as
You might also like to view...
The incidence of sales tax is determined by the
A) level of government (for example, local, state, or federal) which imposes the tax. B) federal government in all cases. C) greed of the sellers. D) price elasticities of supply and demand.
Suppose firms in a perfectly competitive market are incurring an economic loss. As firms exit, the price ________ and the economic loss of the surviving firms ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases
In the long run, if price is less than average cost
A) there is an incentive for firms to exit the market. B) there is no incentive for the number of firms in the market to change. C) there is profit incentive for firms to enter the market. D) the market must be in long-run equilibrium.
Refer to Figure 15-11. What is the size of the deadweight loss prior to Verizon entering the market and what happens to this deadweight loss after Verizon does enter the market?
A) The deadweight loss of area C+D is converted to consumer surplus B) The total deadweight loss is the area D+F; D is converted to consumer surplus and F to producer surplus. C) The deadweight loss of area D is converted to consumer surplus. D) The deadweight loss of area D is converted to producer surplus.