Suppose that today, consumers expect the price of a gallon of gasoline to double in the future. Then today the gasoline
A) demand curve will shift to the right.
B) demand curve will shift to the left.
C) supply curve will shift to the right.
D) supply curve will shift to the left.
A
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The key defining feature of oligopoly, in addition to firms' market power, is
a. collusion. b. free entry and exit. c. firms take rivals' actions into account. d. the Prisoner's Dilemma.
Government regulations
A) have no impact on supply. B) only change the quantity supplied, not the supply curve. C) are generally ineffective due to lobbying by suppliers. D) can change both quantity supplied as well as the supply curve.
In a perfectly competitive market, when the price is greater than the minimum average total cost for all firms:
A. positive economic profits are being earned. B. firms will exit, causing the price to drop. C. firms will enter, causing the price to increase. D. None of these is true.
In addition to the economic stimulus provided by a public works project during a recession, the government is able to provide some services to the population in future years
A. at no cost. B. at least cost. C. in a timely fashion. D. reducing the need for automatic stabilizers.