In the long run, an increase in the saving rate
a. doesn't change the level of productivity or income.
b. raises the levels of both productivity and income.
c. raises the level of productivity but not the level of income.
d. raises the level of income but not the level of productivity.
b
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The most socially efficient market structure in the long run is: a. perfect competition
b. monopolistic competition. c. oligopoly. d. monopoly.
If marginal cost is rising
A) marginal product in rising. B) marginal product is falling. C) average variable costs is equal to marginal cost. D) average variable cost is above average total cost.
One result of adverse selection in the market for used cars is:
A. more lemons (low quality) may be offered for sale than plums (high quality). B. more plums (high quality) may be offered for sale than lemons (low quality). C. few lemons (low quality) are sold. D. no used cars are sold.
A leftward shift of the supply curve for oil in the United States is most likely to result from:
A. A decrease in the fees that oil companies must pay for drilling licenses B. An increase in the subsidy for oil exploration and drilling C. A decrease in the world price of oil D. An increase in the costs of exploration and drilling for oil