Under the assumption of rational expectations, people's expectations about the economy are an important determinant of
A. the long-run aggregate supply curve.
B. the short-run aggregate supply curve.
C. the short-run aggregate demand curve.
D. the long-run aggregate demand curve.
Answer: B
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Factors of production are the most likely to earn economic rent when they:
A. are used by many different firms. B. are fixed in the short run. C. cannot easily be duplicated. D. have high reservation prices.
Critics of the National Collegiate Athletic Association (NCAA) argue that the NCAA monopolizes college athletics and prevents student-athletes from earning money while in college. If this is true, what type of entry barrier does the NCAA have?
a. control of a scarce resource or input b. economies of scale c. a patent d. a copyright
The four components of aggregate demand include all of the following except
A. Saving. B. Net exports. C. Investment. D. Consumption.
Suppose that in October, market analysts predict that the price of platinum will fall in November. What happens in the platinum market in October, holding everything else constant?
A) The supply curve shifts to the right. B) The supply curve shifts to the left. C) The quantity of platinum demanded and the quantity of platinum supplied both increase. D) The demand curve shifts to the right.