Which of the following is true about a perfectly competitive firm in the long run and in the short run?
A. The supply curve in the short run is usually steeper than the supply curve in the long run.
B. The supply curve in the short run is usually flatter than the supply curve in the long run.
C. The demand curve in the short run is usually steeper than the marginal cost curve in the long run.
D. The supply curve in the short run is usually steeper than the average total cost curve in the long run.
Answer: A
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The real-balance effect refers to
A) the real interest rate. B) the production of real goods and services as opposed to financial instruments. C) the prices of goods and services. D) the real value of cash balances that a person is holding.
QN=81 (17792) When the consumer price index rises, the typical family
a. has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the same standard of living. c. finds that its standard of living is not affected. d. can offset the effects of rising prices by saving more.
The reservation wage is
A) the wage that an employer must pay workers to reduce turnover to a reasonable level. B) the wage that ensures a laid-off individual will wait for re-hire, rather than find another job. C) the lowest wage firms are allowed by law to pay workers. D) the wage offer that will end a labor-strike. E) none of the above
According to the Laffer curve, if the economy is on the positively sloped section of the curve, then
A. a decrease in the tax rate will increase tax revenue. B. both an increase and a decrease in tax rates will increase tax revenue. C. an increase in the tax rate will increase tax revenue. D. both an increase and a decrease in tax rates will decrease tax revenues.