Use the figure below to answer the following question.
An increase in supply would best be reflected by a change from
A. point 2 to point 5.
B. point 1 to point 3.
C. point 1 to point 2.
D. point 3 to point 4.
Answer: C
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Referring to a production possibilities curve and the goods being compared, depict the economic event. Computerization in the 1990s launched thousands of new businesses in the United States (capital goods vs. consumer goods).
A. A movement from a point inside the curve to a point on the curve B. A movement from a point on the curve to a point inside the curve C. A shift in the entire curve to the right (outward) D. A shift in the entire curve to the left (inward)
Which of the following is an example of tacit collusion?
A. OPEC B. Copper cartel C. Price leadership D. Government franchise granted to a utility
According to the Keynesian view of the macro economy, which of the following is always true at equilibrium?
A. Aggregate supply equals aggregate demand. B. The price level is too low. C. The economy is at full employment. D. The price level is stable.
"In the long run, a perfectly competitive firm's average total cost is always below the market clearing price." Agree or disagree? Why?
What will be an ideal response?