Under perfect competition, a technological advance
a. shifts the market demand curve leftward, decreasing market price
b. shifts the market supply curve rightward, decreasing market price
c. shifts the market demand curve rightward, increasing market price
d. shifts the market supply curve leftward, increasing market price
e. causes unpredictable shifts in supply and demand
B
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The above figure shows the long-run expansion path. The long-run average cost curve will be
A) horizontal. B) downward sloping. C) upward sloping. D) vertical.
For economists, discrimination is difficult to rationalize because:
a. it is costly to those who discriminate. b. the firms can actually reap greater profits by discriminating between their workers. c. in a freely functioning labor market, there is no such thing as discrimination. d. economists know that in the real world, personal prejudices do not exist. e. wages will not be allowed to fall below their natural equilibrium rate.
A recessionary gap exists when the level of full-employment output exceeds the equilibrium level of output
Indicate whether the statement is true or false
Answer the following statements true (T) or false (F)
1. There tends to be a high positive correlation between the rate of productivity growth and the rate of economic growth. 2. There tends to be a positive correlation between real wages of workers and the productivity of labor in the economy. 3.Global competition has tended to slow down the rate of productivity growth in the United States. 4. Simultaneous consumption and network effects are sources of increasing returns and economies of scale that promote productivity growth.