Figure 10-2
In Figure 10-2, which segment of the aggregate supply curve has the smallest multiplier effect?
a.
AB
b.
BC
c.
CD
d.
DG
d
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Which of the following is a reason why firms may be more efficient than markets as coordinators of economic activity?
A) economies of scale and scope B) lower transactions costs C) economies of team production D) all of the above
How does price serve as a signal to resource owners?
What will be an ideal response?
What would happen in the market for laser eye surgery if insurance companies started to cover a portion of the price of voluntary procedures?
A) Demand and supply will both increase. B) Demand will increase, but this will not shift the supply curve. C) Supply will increase, but this will not shift the demand curve. D) Demand will increase and supply will decrease.
How do open market operations work?
What will be an ideal response?