Assume the short-run average total cost for a perfectly competitive industry decreases as the output of the industry expands. In the long run, the industry supply curve will:
a. have a positive slope.
b. have a negative slope.
c. be perfectly horizontal.
d. be perfectly vertical.
b
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Within the range of prices around the midpoint on a straight-line demand curve, demand is
A) elastic. B) inelastic. C) unit-elastic. D) zero.
The sum of payments made to resource owners for the use of their resources is:
a. gross domestic product. b. net domestic product. c. national income. d. personal income. e. disposable personal income.
Suppose that over time, consumers used discount stores at an increasing rate, the CPI would tend to be
a. accurate b. underestimated because consumers would buy goods and services at lower prices than those collected by the BLS c. underestimated because consumers would buy goods and services at higher prices than those collected by the BLS d. overestimated because consumers would buy goods and services at lower prices than those collected by the BLS e. overestimated because consumers would buy goods and services at higher prices than those collected by the BLS
According to international data,
a. U.S. per capita consumption of water is lower than in most other countries b. water prices are generally equivalent across nations c. European cities generally pay higher prices for water than cities in the United States d. water prices across nations tend to defy the Law of Demand