For a firm operating in a perfectly competitive industry:
A.) an improvement in technology will reduce marginal cost.
B.) an improvement in technology will shift the firm and industry supply curve to the left.
C.) controlling the market price is easily achievable.
D.) Both A and B are true.
A.) an improvement in technology will reduce marginal cost.
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To construct a supply curve, an economist needs data on price and quantity. Each point on the supply curve is
a. supply of the product. b. a quantity supplied at that price. c. the amount that people want to buy. d. the amount people want to sell to buyers of different incomes. e. All of the above are correct.
If the federal funds rate were below the level the Federal Reserve had targeted, the Fed could move the rate back towards its target by
a. buying bonds. This buying would reduce reserves. b. buying bonds. This buying would increase reserves. c. selling bonds. This selling would reduce reserves. d. selling bonds. This selling would increase reserves.
Which of the following groups of people is eligible for unemployment insurance?
a. people who were laid off in a recession b. people who have not had a job before c. people who were fired d. people who quit their job
If the price of capital declines, the consequent output effect would be:
A. greater, the more elastic the demand for the product. B. greater, the less elastic the demand for the product. C. negative. D. of consequence only if capital and labor are used in fixed proportions.