Everything else equal, the AC curve will shift when
a. the price of the product rises.
b. technical change raises the MPP of one input.
c. output is increased.
d. increasing returns to scale are present.
b
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Which of the following is definitely NOT an example of a natural monopoly?
A) local water distribution companies B) urban rail services C) local electric power and gas distribution companies D) urban retail stores
One way that the government encourages the production of a good with positive externalities is to offer
A) an effluent fee. B) a market to pollute. C) a subsidy. D) a pollution tax.
Keynes believed the government should
a. control wages and prices to ensure full employment. b. ensure that workers earned high wages and full employment. c. ensure that aggregate demand was high enough to ensure full employment. d. ensure aggregate demand was high enough to control the economy.
When the labor force participation rate falls, the average wage in the economy is likely to increase. Why?
A. Educated workers are those most likely to leave the labor force. B. Workers who have the worst wage options are those most likely to leave the labor force. C. Wages do not consider salaried workers. D. The most experienced workers are those most likely to leave the labor force. E. The United States has a negatively skewed wage distribution.