All of the following are assumptions of the classical model EXCEPT
A) inflexible wages. B) self-interest of economic actors.
C) pure competition. D) absence of money illusion.
A
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The long-run industry supply curve in a decreasing-cost, perfectly competitive industry is
A) negatively sloped. B) perfectly elastic. C) positively sloped. D) perfectly inelastic.
Diseconomies of scale often arise because higher production levels allow specialization among workers
a. True b. False Indicate whether the statement is true or false
The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC1 and MC2 are the marginal cost curves for those two plants. What price should the firm set?
A. $25 B. $30 C. $40 D. $45 E. $55
Which of the following statements is true?
A. The four phases of the business cycle, in order, are: peak, recovery, trough, recession. B. When unemployment is rising then real GDP is rising. C. The economic problem typically associated with a recovery is rising unemployment. D. Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.