The full employment level of GDP is sometimes referred to as “potential GDP.”
Answer the following statement true (T) or false (F)
True
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If in a given market of more than one producer, there were to exist for a long interval of time a positive gap between price and average cost (P > AC), this would suggest that
a. there are many sellers in the industry. b. there exists an oligopoly or cartel in the industry. c. this is a contestable market. d. the firm cannot be a monopolistic competitor.
Which of the following would not be true of a competitive labor market?
A. Wages would be determined by supply and demand. B. The demand curve for labor would be derived like the demand curve for any other input. C. The demand curve for labor would be the downward-sloping portion of the MRP curve. D. Labor supply would be determined by the marginal revenue product curve.
What affects the price elasticity of demand for a monopolist's product?
What will be an ideal response?
In the quantity theory of money, velocity is assumed
A. to be a declining number. B. to increase with increases in the money supply. C. to equal 1.4. D. constant.