The greater are the barriers to entry into an industry
A. the more elastic will be the demand curves for existing firms.
B. the more likely that existing firms will enjoy large profits in the long run.
C. the lower will be short-run profits.
D. the lower will be the average cost curves of existing firms.
B. the more likely that existing firms will enjoy large profits in the long run.
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The slope of a U-shaped curve is infinity at the bottom of the U
a. True b. False
If C = $1,000 + 0.8(Y) and intended investment is $4,000 . then the equilibrium level of national income will be
a. $3,200 b. $25,000 c. $7,778 d. $13,200 e. $14,000
The main effect on the economy of the financial sector crisis in late 2008 was
A. reduced aggregate supply. B. increased aggregate demand. C. reduced aggregate demand. D. increased aggregate supply.
Refer to the given diagram, which shows consumption schedules for economies A and B. We can say that the:
A. MPC is greater in B than in A.
B. APC at any given income level is greater in B than in A.
C. MPS is smaller in B than in A.
D. MPC is greater in A than in B.