In the short run, a firm in monopolistic competition produces where
A) MR = MC and economic profit is equal to zero.
B) MR = MC.
C) the given market price is equal to MC and economic profit is equal to zero.
D) the given market price is equal to MC.
B
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Which of the following taxes is based on the ability-to-pay principle?
a. tolls on a bridge b. income taxes c. gasoline excise taxes d. property taxes e. user fees that collect the same amount from each person
When the short run aggregate supply curve shifts left, it ___ the short-run Phillips curve
a. Moves the economy up along b. Moves the economy down along c. Shifts right d. Shifts left
Which of the following is an exogenous variable in the Three-Sector-Model?
a. Oil prices b. Real GDP c. Quantity of real credit per time period d. Quantity of currency per time period e. All of the above are exogenous variables.
If a fall in the price level made people feel richer and initially increased aggregate expenditures by 20, the AD curve would:
A. shift by less than 20. B. not shift at all. C. shift by exactly 20. D. shift by more than 20.