The argument for passive policymaking will be stronger if
A. wage flexibility is common.
B. price flexibility is common.
C. pure competition is widespread.
D. all of these.
Answer: D
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In the long run, a monopolistically competitive firm will:
a. produce more than a perfectly competitive firm. b. suffer an economic loss. c. earn positive economic profit. d. produce less than a perfectly competitive firm.
Hot dogs and hamburgers might be considered ________ goods compared to steak.
A. complementary B. normal C. inferior D. substitutable
The average variable cost of producing 250 sundaes is $5. At this level of output, average variable cost is minimized. Which of the following statements is true?
A. Average fixed cost is minimized at an output less than 250 sundaes. B. Total cost of producing 250 sundaes is $1,250. C. Average total cost is minimized at an output greater than 250 sundaes. D. Marginal cost of the 251st sundae is $1,250.
A decrease in resources, efficiency, or technology will shift the:
A) short-run aggregate supply curve rightward. B) short-run aggregate supply curve leftward. C) long-run aggregate supply curve rightward. D) long-run aggregate supply curve leftward.