When a country imposes and maintains price controls, inflation
A) can never occur.
B) will result in a general surplus of goods and services.
C) is felt through long lines of people wanting to buy goods.
D) has been legislated away.
C
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Refer to Figure 11-4. What happens to the average fixed cost of production when the firm increases output from 150 to 200?
A) It could rise or fall depending on what happens to total cost. B) It rises. C) It falls. D) It remains constant.
Who is more likely to drive carelessly, Camila in her 1980 Ford with bad brakes or Samantha, who has a 2005 BMW with all the most recent safety options?
The Organization of Petroleum Exporting Countries (OPEC) is an example of
A. a price leadership system. B. a generally unsuccessful cartel. C. an organization devoted to tacit collusion. D. a successful cartel.