The supply curve slopes upward because producers' cost per unit eventually
A. decreases as more units are sold.
B. will be subsidized by the government.
C. remains unchanged as more units are sold.
D. increases as more units are sold.
Answer: D
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Empirical evidence shows that the quantity theory of money is a good theory of inflation
A) in the long run, but not in the short run. B) in the short run, but not in the longrun. C) in both the long run and the short run. D) not in either the long run nor the short run.
Which of the following would tend to shorten recessions associated with anti-inflation policies by central banks?
a. People adjust their expectations of inflation rapidly. b. People believe policy announcements made by central bank officials. c. The short-run Phillips shifts rapidly. d. All of the above are correct.
A portion of a worker's earnings is economic rent if
A. the worker was the last person hired at the going wage rate. B. the worker has industry-specific skills. C. the supply curve of labor is horizontal. D. the worker would accept a small wage cut without quitting or working for someone else.
Let us suppose Harry's, a local supplier of chili and pizza, has the following revenue and cost structure:
A. Harry's should stay open in the long run
B. Harry's should shut down in the short run
C. Harry's should stay open in the short run
D. Harry's should shut down in the short run but reopen in the long run