A decrease in the money supply will shift the long-run aggregate-supply curve to the left
a. True
b. False
Indicate whether the statement is true or false
False
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Government-operated firms with monopoly power
a. will necessarily meet the criteria of economic efficiency, as long as price equals average total cost. b. will always be more efficient than private firms because they do not have to make a profit. c. are likely to be inefficient since some of the monopoly power is likely to serve the interests of the governmental managers and employees. d. are highly responsive to changes in the preferences of individual consumers since consumers are also voters.
The long-run equilibrium for a firm in an information product industry exists at a point at which
A. marginal cost exceeds marginal revenue. B. average total cost is minimized. C. the demand curve is tangent to the average total cost curve. D. the demand curve crosses the marginal cost curve.
Which statement is true?
A. Product differentiation can take place even if there are no physical differences among products. B. Price discrimination is not possible in monopolistically competitive firms. C. Economies of scale ensure that monopolistically competitive firms make a profit in the long run. D. The absence of barriers to entry ensures short-run profits for monopolistic competitors.
If the economy is in a recession and prices are relatively stable, then the discretionary fiscal policy or policies that would most likely be recommended to correct this macroeconomic problem would be:
a. Increased government spending or decreased taxation, or a combination of the two actions b. Decreased government spending or decreased taxation, or a combination of the two actions c. Increased government spending or increased taxation, but not a combination of the two actions d. Increased government spending or increased taxation, or a combination of the two actions