Firms in perfect competition produce the productively efficient output level in the short run and in the long run
Indicate whether the statement is true or false
FALSE
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For the classical economists, the quantity theory of money provided an explanation of movements in the price level. Changes in the price level result
A) from proportional changes in the quantity of money. B) primarily from changes in the quantity of money. C) only partially from changes in the quantity of money. D) from changes in factors other than the quantity of money.
When relatively few workers have high ability,
A) they will settle for the average wage. B) they will want to signal their ability. C) the premium for high ability is less than when most workers have high ability. D) they do not need to signal their ability.
A decrease in price causes:
A. a quantity effect, which is an increase in revenue that results from selling fewer units of the good. B. a price effect, which is an increase in revenue that results from receiving a lower price for each unit sold. C. both a price effect and quantity effect. D. a decrease in quantity demanded.
An increase in investment demand would be a consequence of a fall in:
a. The costs of acquiring new technology b. Expected sales of new products c. The rate of technological innovation d. The expected rate of return on investment