In an efficient market, a scarce good generally has a ____ than a less-scarce good
a. higher price
b. higher total utility to consumers
c. more even distribution across income classes
d. lower price in off-peak periods
a
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The figure above shows a perfectly competitive firm. When the firm maximizes its profit, its total cost is
A) $1,200. B) less than $1,200 but more than zero. C) more than $1,200. D) zero.
According to the new classical theory, a monetary surprise will
a. shift the labor supply curve to the right in the short run. b. shift the labor supply curve to the left in the short run. c. not shift the labor supply curve in the short run. d. shift the aggregate supply curve to the left in the short run. e. shift the aggregate supply curve to the right in the short run.
An example of a good that creates a positive network externality is:
A. the telephone. B. social network websites (e.g. Facebook). C. a workers’ union. D. All of these are examples of good that create positive network externalities.
When growth goes down, unemployment tends to go:
A. up shortly after, and vice versa. B. down shortly after, and vice versa. C. down at the same time, and vice versa. D. up at the same time, but remains sticky on the way down and lags behind.