If a competitive price-taking firm is operating in long-run equilibrium and market demand suddenly falls, the short-run result will be
a. greater economic profit.
b. a normal profit.
c. lower average total cost.
d. lower average variable cost.
e. economic losses.
E
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Endogenous growth theory attempts to
A) replace the Solow model with a model in which money growth plays a key role. B) explain how societies can more easily reach the "Golden Rule." C) show how population growth reduces capital and output. D) explain why productivity changes.
A market in which orders exist in large volume is said to have
A) depth. B) breadth. C) resiliency. D) efficiency.
Other things the same, which of the following is correct?
a. A decrease in the price level causes the dollar to appreciate. Aggregate demand shifts right. b. A decrease in the price level causes the dollar to depreciate. Aggregate demand shifts right. c. If speculators lose confidence in the American economy, the dollar appreciates. Aggregate demand shifts right. d. If speculators lose confidence in the American economy, the dollar depreciates. Aggregate demand shifts right.
Brett buys a new cell phone for $100. He receives consumer surplus of $80 from the purchase. How much does Brett value his cell phone?
A) $180 B) $100 C) $80 D) $20