Which of the following is not a reason why government officials are willing to impose entry barriers?
A) to raise revenue
B) to encourage innovation which may improve the standard of living in the long run
C) to increase economic efficiency
D) to promote an equitable distribution of income
Answer: D
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The data in the above table show that when the price level is 120, if aggregate demand does not change then the
A) money wage rate will rise in the future. B) money wage rate will fall in the future. C) short-run aggregate supply curve will shift leftward. D) long-run aggregate supply curve will shift leftward.
Mpc + mps =
A) 0. B) 0.5. C) 1. D) 100.
Average costs _______initially due to the presence of fixed costs and then rise due to _________
a. fall; decreasing marginal costs b. fall ; increasing marginal costs c. rise; decreasing fixed costs d. rise; increasing fixed costs
Under cost-plus regulation, a regulated firm is permitted to charge prices that cover the explicit cost of production plus a markup to cover the:
A. cost of winning a government contract. B. extra cost associated with the state ownership of natural monopolies. C. owner's economic rent. D. opportunity cost of the resources supplied by the firm's owners.