In the long run, perfectly competitive firms produce a level of output such that:
A. P = MC and P = minimum of AC.
B. P = MC.
C. P = minimum of AC.
D. None of the answers is correct.
Answer: A
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To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. The deadweight loss created by this tax would be greater than shown in the figure above if
A) the demand were more elastic. B) the supply were more elastic. C) neither of the above. D) both A and B above.
Raising the federal funds rate shifts the aggregate demand curve ________, so that real GDP________ and the price level ________
A) rightward; increases; rises B) leftward; decreases; rises C) rightward; increases; falls D) leftward; increases; rises E) leftward; decreases; falls
In general, it is fair to say that Americans are provided with
A. a greater amount of product differentiation than people in most other countries. B. less amount of product differentiation than people in most other countries. C. about the same amount of product differentiation as people in other countries.
Which of the following did NOT play a role in keeping Greece from defaulting between 2010 and 2012?
A) International Monetary Fund B) United Nations C) European Union D) European Central Bank