Consider the demand curves for soft drinks shown in the figure above. Moving from point a to point c means that
A) the marginal benefit of each additional soft drink falls.
B) the opportunity cost of another soft drink increases.
C) people's incomes have decreased.
D) the price of a soft drink has increased.
A
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With an increase in the capital stock, the short-run aggregate supply curve
A) remains as it is. B) shifts rightward. C) shifts leftward. D) becomes steeper.
If managers of a private corporation perform poorly, each owner has the option of
a. closing down the firm b. selling her share of the firm c. managing the firm herself d. paying no taxes on the little profit she does receive e. selling off the plant and equipment of the firm
Monopolistic competition is a market structure in which there
a. are no good substitutes produced within the industry, giving each firm substantial market share b. are perfect substitutes produced within the industries, giving each firm only partial market share c. are monopolies competing to create monopolistic competition in the short run and oligopoly in the long run d. are a large number of substitute goods produced in the industry e. are only a few firms in the industry
Over time, continued budget deficits lead to
a. a higher capital stock and higher productivity. b. a higher capital stock and lower productivity. c. a lower capital stock and higher productivity. d. a lower capital stock and lower productivity.