Which of these does not hold true if an economy is simultaneously in long-run and short-run equilibrium?
a. The actual price level equals the expected price level
b. Aggregate quantity supplied equals potential output.
c. Aggregate quantity demanded equals potential output.
d. Aggregate quantity supplied equals aggregate quantity demanded.
e. Aggregate demand curve is horizontal at the potential output level.
e
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An optimum currency area functions best when labor is immobile from country to country
a. True b. False
Adam Smith's theory of the invisible hand posits the actions of independent, self-interested buyers and sellers will ________ lead to the most efficient allocation of resources.
A. rarely B. always C. often D. never
?Kites /hourSnowboards /hourJesse81April123
Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.1 shows how much of each good Jesse and April can paint in one hour. Jesse's opportunity cost of painting one kite is painting:
A. 1/12 of a snowboard. B. 1/8 of a snowboard. C. 1/3 of a snowboard. D. 3 snowboards.
Which of the following statements is INCORRECT regarding the properties of information products?
A) Providing an information product entails incurring relatively high fixed costs. B) The average total cost curve for a firm that sells an information product slopes upward. C) The firm experiences economies of operation in the short run. D) In the long run, the producer earns sufficient revenue to cover the opportunity cost of capital.