Figure 5-1
In , S1 and D illustrate the demand and supply for a product if it were produced in a normal competitive market. Which of the following would be true if the firms in the industry were instead able to get government licensing restrictions to limit competition in the market?
a.
The restricted market supply would be S3, resulting in a lower price and a higher than efficient level of output.
b.
The restricted market supply would be S3, resulting in a higher price and a less than efficient level of output.
c.
The restricted market supply would be S2, resulting in a lower price and a higher than efficient level of output.
d.
The restricted market supply would be S2, resulting in a higher price and a less than efficient level of output.
d
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Okun's Law states that for each percentage point that the unemployment rate is above its natural rate, there is a ________ percent gap between real GDP and potential GDP
A) 4 B) random C) 2 D) 6 E) 8
A contractionary monetary policy can reduce the inflation rate without causing a rise in unemployment if expectations are formed rationally and monetary policy is
A) combined with expansionary fiscal policy. B) carried out in total secrecy. C) publicly announced and credible. D) combined with contractionary fiscal policy.
If the resource market is perfectly competitive, the marginal factor cost is equal to the price of the resource
a. True b. False Indicate whether the statement is true or false
If peanuts were widely accepted for purposes of exchange, then
A) peanuts would be money. B) peanuts would be less valuable than they are currently. C) we would observe people using peanuts to purchase cars. D) a and c E) a and b