(Figure: Long-Run Aggregate Supply Curves) Which of the following can explain the shift of the long-run aggregate supply curve from A to B in the figure?
What will be an ideal response?
development of new technology
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In the above figure, if the real wage is $20 per hour, a labor
A) shortage will occur and the real wage will rise. B) shortage will occur and the real wage will fall. C) surplus will occur and the real wage will rise. D) surplus will occur and the real wage will fall.
Under the cartel model, each firm produces where
a. marginal cost equals marginal revenue. b. price equals marginal cost. c. the average cost curve is at a minimum. d. price exceeds marginal cost by the greatest amount.
Trade results from:
A. comparative advantage. B. absolute advantage. C. self-sufficiency. D. diminishing returns.
Carol has just purchased a cereal she saw advertised on TV because of the health benefits contained in the ad. The TV ad is an example of
A) mass marketing. B) direct marketing. C) indirect marketing. D) interactive marketing.