Which of the following is true of a rise in the price of a good that is measured on the horizontal axis?
a. It causes the budget constraint to rotate outward on the horizontal axis.
b. It causes the budget constraint to rotate outward on the vertical axis.
c. It causes the budget constraint to rotate inward on the horizontal axis.
d. It causes a shift in the budget constraint.
c
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In long-run macroeconomic equilibrium
A) real GDP equals potential GDP. B) the price level is fixed and aggregate demand determines real GDP. C) real GDP and the price level are determined by short-run aggregate supply and aggregate demand and long-run aggregate supply is irrelevant. D) real GDP is less than potential GDP.
Which of the following correctly describes the concept of free riding?
a. Making a public good available to all for no cost b. Using a public good but leaving it to others to pay for it c. Encouraging the use of city buses by not charging one day per week d. Using a public good without preventing others from using it
According to supply siders, tax cuts should increase aggregate supply
a. True b. False Indicate whether the statement is true or false
For a monopolist, at the profit-maximizing level of output:
A. marginal revenue is greater than average revenue. B. price is greater than marginal revenue. C. price is equal to marginal revenue. D. average revenue is greater than price.