A beneficial supply shock would cause
A. a movement down the short-run Phillips curve.
B. the short-run Phillips curve to shift upward and to the right.
C. a movement up the short-run Phillips curve.
D. the short-run Phillips curve to shift downward and to the left.
Answer: D
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Which of the following is a reason why individual firms under perfect competition would not find it gainful to advertise their product?
A. The quantity of the product demanded is very large. B. Firms produce a homogeneous product. C. Firms do not make long-run profits. D. The market demand curve cannot be increased.
The saving and investment equation holds only when the federal budget is balanced
Indicate whether the statement is true or false
Which of the following is NOT an artificial barrier to entry?
A. a patent B. government franchise C. large economies of scale D. government licensing
All of the following encourage increases in technological progress EXCEPT:
A. larger markets through free trade. B. the possibility of monopoly profits. C. the ability to patent a new invention. D. closed economies.