An economist says: "The supply curve has two interpretations." What does the economist mean?
What will be an ideal response?
The first interpretation is that the supply curve shows the quantities of a good or service that producers are willing and able to sell at each price, other things being equal. The second interpretation is that the supply curve is a minimum-supply-price curve, so that for each quantity it shows the lowest price at which someone is willing to sell another unit.
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During a demand-pull inflation, if the Fed tries to maintain a level of real GDP above potential GDP, the AD curve will ________ and the AS curve will ________
A) not shift; shift rightward continuously B) shift rightward continuously; shift rightward continuously C) shift rightward once; shift rightward continuously D) shift rightward continuously; not shift E) shift rightward continuously; shift leftward continuously
The authors of the textbook would not want to say you were "littering" when you toss your peanut shells under your seat at a major league baseball game because
A) peanut shells are biodegradable. B) someone is going to clean up after you. C) the games are played outside. D) the stadium is public property and public property is no one's property. E) the people in charge of putting on the game don't mind at all.
An example of price discrimination is the price charged for:
a. troll dolls. b. college admission. c. textbooks. d. diamonds.
Which of the following is an accurate statement about a firm operating at a loss?
a. It will stay open in the short run if its total revenue does not cover variable costs. b. It will stay open in the short run if its total revenue covers variable costs but not all fixed costs. c. It will shut down in the short run if its total revenue exceeds variable costs. d. It will shut down in the short run if its total revenue cannot cover both variable and fixed costs.