Unlike the GDP deflator, the CPI does not consider goods and services purchased by business and government
a. True
b. False
Indicate whether the statement is true or false
True
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Compared to commercial banks and thrift institutions, finance companies are
A) heavily regulated. B) able to attract small depositors. C) prevented from making relatively small loans. D) virtually unregulated.
Which of the following would cause a shift of the demand curve to the right?
a. The price of a complement increases.
b. The number of buyers in a market decreases.
c. Tastes change against a good.
d. Future price increase is expected.
Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
If the market supply curve is given by S3, then in the long run firms will:
A. exit the market, leading the market supply curve to shift back to S1. B. exit the market, leading the market supply curve to shift back to S2. C. neither enter nor exit the market, so the market supply curve will remain at S3. D. enter the market, leading the market supply curve to shift back to S2.
If a firm experiences economies of scale as it expands production, then:
a. it is not subject to diminishing returns. b. its marginal cost curve will be downward sloping in that range. c. its marginal product curve will be downward sloping in that range. d. its long-run average total cost curve will be downward sloping in that range.