Like the short run
A) the long run supply curve is the sum of the individual firms' supply curves.
B) the maximum number of firms in the market is fixed.
C) firms operate only if they make a positive profit.
D) All of the above.
A
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Explain how a market demand curve is constructed
What will be an ideal response?
Open market sale of government securities results in:
A) an increase in bank reserves. B) a decrease in bank reserves. C) a decrease in interest rates. D) none of the above.
Dissatisfaction with public school education has led many parents to try home schooling for their children. If parents reduce their work from a full-time to a part-time load in order to spend time teaching their children at home, how will this affect GDP?
A. GDP will stay the same. B. Real GDP will increase and nominal GDP will decrease. C. Both real and nominal GDP will increase. D. GDP will decrease.
In a monopoly where the marginal revenue and price are, respectively, given by $10 and $20, the price elasticity of demand is:
A. ?1. B. ?0.5. C. ?2. D. Cannot be determined based on the information in the question.