If a perfectly competitive industry uses a large proportion of the available inputs in a resource market, then the long-run market supply curve for the industry will most likely be:
a. vertical
b. horizontal.
c. upward sloping.
d. downward sloping.
c
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For choice sets emerging from "exogenous" income, the budget line will shift parallel whenever both prices change by the same percentage.
Answer the following statement true (T) or false (F)
The "underemployed" are counted as "unemployed."
Indicate whether the statement is true or false
If the GDP deflator increases from one year to the next, it can be concluded that the economy has experienced: a. growth
b. stagnation. c. stagflation. d. inflation.
The U.S. government establishing a policy that it will bail out troubled financial institutions and a resulting increase in the number of bank failures is an example of: a. the moral hazard problem
b. the free rider problem. c. the adverse selection problem. d. the "lemon" problem.