The long-run aggregate supply curve is:
A. vertical.
B. horizontal.
C. downsloping.
D. upsloping.
Answer: A
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Which of the following statements is NOT true about Say's law?
A) Markets would be regularly hit by severe shortages and surpluses. B) People produce more goods than they want for their own use only if they seek to trade them for other goods. C) Desired expenditures will equal actual expenditures. D) Surpluses will be eliminated by falling prices and shortages will be eliminated by increasing prices.
Refer to the provided graph of a competitive market. If the output level is Q1, then there are efficiency losses indicated by the area
What will be an ideal response?
To be effective, a price ceiling must be above the equilibrium price.
Answer the following statement true (T) or false (F)
Which of the following statements about the average total cost curve is false?
A. The marginal cost curve crosses the average total cost curve at the point at which average total cost is minimized. B. It is initially downward sloping because increases in quantity make the average fixed cost smaller. C. It eventually becomes upward sloping because the law of diminishing returns sets in. D. It is always downward sloping because the average fixed costs will always decrease as quantity increases.