Which of the following also occurs as the production possibilities curve shifts outward?
A. GDP per capita remains constant.
B. The unemployment rate rises.
C. Long-run aggregate supply increases.
D. Output decrease.
Answer: C
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Why do the owners of good-quality used cars stay away from the market for used cars?
What will be an ideal response?
When there are few unemployed resources, additional spending will tend to
a. flow directly to the unemployed resources, so that the multiplier can be maintained at 1/1-mpc. b. increase the marginal propensity to consume, and thereby increase the size of the multiplier. c. increase the demand for resources and drive prices downward, increasing the size of the multiplier. d. bid resources away from other activities and drive prices upward, reducing the size of the multiplier.
These are the cost and revenue curves associated with a monopolistically competitive firm in the short run.
According to the graph shown, in the long run we can expect that
A. price will increase. B. firms will enter the market. C. profits will increase. D. firms will exit the market.
The marginal utility derived from viewing the next movie download is the
A. average utility per minute of viewing. B. additional utility from viewing the movie. C. additional utility from viewing the first minute of the movie. D. average utility per hour of viewing.