A shortage occurs when the market price is lower than the equilibrium price.
Indicate whether the statement is true or false.
Ans: True.
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Refer to the figure above. What does the region ABCPe denote?
A) Economic profit B) Loss incurred by the producer C) Consumer surplus D) Deadweight loss
If a firm faces a horizontal demand curve, marginal revenue
a. is constant regardless of how much output the firm produces b. decreases as the firm produces more output c. increases as the firm produces more output d. decreases if the firm produces less output e. is less than price at most possible output levels
In a debate on the state of the economy Senator A pointed out that the price of clothing, fruits, and computers had decreased slightly over the last year, while Senator B stated that the inflation rate had increased over the last year. In this example, aggregate data is being used by:
A. Senator B. B. neither senators. C. both senators. D. Senator A.
Nonactivists hold that
A) activist monetary policies are likely to be destabilizing rather than stabilizing. B) economic fine-tuning is quite feasible. C) flexibility in wages and prices is sufficient to allow the economy to return at a reasonable speed to full-employment output. D) a and c E) all of the above