When a resource used in the production of a good sold in a competitive market is available in only limited quantities, the long-run supply curve is likely to be upward sloping
a. True
b. False
Indicate whether the statement is true or false
True
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“The market has failed to provide enough rental housing in New York City. This demonstrates another failure of free markets-they may lead to shortages of necessities.” Explain why you agree or disagree.
What will be an ideal response?
A rise in the exchange rate leads to a decrease in the quantity of dollars demanded
Indicate whether the statement is true or false
When labor usage is at 12 units, output is 36 units. From this we may infer that
A) the marginal product of labor is 3. B) the total product of labor is 1/3. C) the average product of labor is 3. D) none of the above
If it were not for the automatic stabilizers in the U.S. economy,
a. the Federal Reserve would have less reason than it has now to monitor stock prices. b. it would be more desirable than it is now for the Federal Reserve to target an interest rate. c. a strict balanced-budget rule would be more desirable than it is now. d. output and employment would probably be more volatile than they are now.