Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2.
B. P2 and Y1.
C. P3 and Y1.
D. P3 and Y2.
Answer: D
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Under the Sarbanes-Oxley Act of 2002, the provision that established the PCAOB to supervise accounting firms is an example of
A) regulate for transparency. B) supervisory oversight. C) separation of functions. D) socialization of information production.
A normal good is defined as a product for which quantity demanded increases as price decreases
a. True b. False
Which of the following is TRUE?
A. If MC is above ATC, ATC must be increasing. B. The MC curve intersects AFC at its minimum point. C. If MC is below AVC, AVC must be increasing. D. none of these
Refer to the above figure. Suppose there are L4 workers in the union. If the union wants to set a wage rate of W3, it must
A) determine which of its members will earn W3 and which will earn W1. B) accept that L4 - L2 members will not be able to find work in the industry. C) accept that L3 - L2 workers will have to get a lower wage equal to W2 and L4 - L3 workers will have to get a wage of W1. D) determine the most efficient way to get the firms to accept the wage and hire all L4 workers.