Other things the same, the aggregate quantity of output supplied will increase if the price level
a. is lower than expected so that firms believe the relative price of their output has increased.
b. is lower than expected so that firms believe the relative price of their output has decreased.
c. is higher than expected so that firms believe the relative price of their output has increased.
d. is higher than expected so that firms believe the relative price of their output has decreased.
c
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The gains from trade within a price system is
A) the sum of consumer surplus and producer surplus. B) consumer surplus less producer surplus. C) consumer surplus divided by producer surplus. D) consumer surplus multiplied by producer surplus.
In the 1980s, tax rates were cut, government revenues fell below expectations, and there was a then-historic peacetime deficit
a. True b. False Indicate whether the statement is true or false
The ______ is the portion of the MC curve above the AVC curve.
a. short-run demand curve b. long-run demand curve c. short-run supply curve d. long-run supply curve
If the short-run price elasticity of demand for hospital care is .27, then the long-run price elasticity is expected to be:
A. greater than .27. B. perfectly inelastic. C. less than .27. D. equal to .27.