Economists assume that when there is a change in supply and/or demand, the market clearing price returns to the equilibrium
A. after an adjustment period.
B. quickly.
C. after a protracted negotiation process.
D. slowly.
Answer: A
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The typical American family spends about ____ percent of its budget on goods and the remainder on services.
A. 22 B. 32 C. 66 D. 80
A production function: a. shows the relationship between a firm's costs and revenues
b. shows the relationship between production and profits. c. shows the relationship between inputs and the maximum output that can be produced from those inputs. d. shows the relationship between variable inputs and fixed inputs.
Demand-pull inflation is associated with a(n)
a. decrease in the aggregate supply curve b. increase in the aggregate supply curve c. increase in the aggregate demand curve d. decrease in the aggregate demand curve e. decline in the availability of a productive resource
When a firm shuts down because the market price of its product is less than the average variable cost of producing that product, the loss it suffers is
A. equal to its total revenue. B. less than the loss it would earn from continuing to operate. C. equal to its total variable cost. D. equal to zero.