Ceteris paribus, which of the following will occur if the Fed buys bonds through open-market operations?
A. The aggregate supply curve should shift leftward.
B. The aggregate supply curve should shift rightward.
C. The aggregate demand curve should shift leftward.
D. The aggregate demand curve should shift rightward.
C. The aggregate demand curve should shift leftward.
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Suppose TC = 10 + (0.1 ? q2). If there are 100 identical firms in the market, the market supply curve is
A) Q = 1000 ? p. B) Q = 500 ? p. C) Q = 100 ? p. D) Q = 10.
__________________ —a term referring to the activities that businesses can perform to take advantage of economies of scale.
a. Scarcity b. Division of labor c. Core competency d. Specialization
A natural monopoly exists when
A) the firm holds a patent. B) there are governmental entry restrictions. C) the firm owns all of the raw materials needed to produce the product. D) economies of scale occur.
The payroll tax for Social Security in the United States is
A. proportional. B. uniform. C. regressive. D. progressive.