The long-run aggregate supply curve is vertical because
A. the production possibilities curve is vertical.
B. the aggregate demand curve is downward sloping.
C. a change in the level of prices will have no effect on real output in the long-run.
D. technology increases at a constant rate.
Answer: C
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If the automobile workers' union successfully negotiates a wage increase for its members, how does the wage hike affect the supply of automobiles?
A) The supply increases. B) The supply decreases. C) The quantity supplied increases. D) The quantity supplied decreases. E) Both answers B and D are correct.
The above table shows the short-run total product schedule for the campus book store. With which employee do diminishing marginal returns set in?
A) the 9th employee B) the 6th employee C) the 5th employee D) the 2nd employee
The reason that some corporations grow so big is
A. double taxation. B. that they are a separate entity from their owners. C. that they have limited liability. D. that they cannot be regulated.
The law of diminishing marginal returns is seen in the
A) calendar year. B) short run. C) long run. D) market horizon.