In long-run equilibrium, a monopolistically competitive firm will produce where P > MR = MC > minimum ATC.
Answer the following statement true (T) or false (F)
True
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If the dotted horizontal line represents the effect of a usury law then there is a ____ of loanable funds of _____ billion dollars.
A. surplus; 275
B. shortage; 275
C. surplus; 400
D. shortage; 400
Technological change, such as the information technology revolution of the 1990s can shift the aggregate supply curve outward. If, at the same time, the government is decreasing spending, the most likely outcome of these two factors is a(n)
A. increase in the price level. B. decrease in the price level. C. increase in real GDP. D. decrease in real GDP.
Exhibit 10-12 Income distribution for three countries QuintileCountry I (%) Country II (%) Country III (%) Poorest 6 8 4 Second12 12 8 Third15 15 10 Fourth27 30 30 Richest40 35 48 Exhibit 10-12 shows the percentage of income received by each population quintile. In Country II we can conclude that the:
A. least-wealthy 40 percent of the population received 20 percent of the economy's income. B. least-wealthy 20 percent of the population received 25 percent of the economy's income. C. richest 20 percent of the population received 20 percent of the economy's income. D. richest 40 percent of the population received 35 percent of the economy's income.
Recall the Application about the link between happiness and GDP to answer the following question(s). Comparing changes in happiness to changes in per capita income over the last 30 years, economists at Dartmouth College and Warwick University have measured levels of happiness in the United States and United Kingdom based on income levels, ethnicity, age, and gender.According to the Application, large increases in per capita income in the United States over the past 30 years have:
A. had the greatest impact on retired people. B. not increased happiness levels. C. led to a higher divorce rate. D. lowered stress levels.