In a market with only one firm (a pure monopoly), the Herfindahl-Hirschman Index (HHI) would equal 10,000.
Answer the following statement true (T) or false (F)
True
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If wages instantaneously adjust to reflect expected inflation that is based on an anticipated increase in the money supply,
A) the aggregate demand and positively sloped aggregate supply curve shift to the right at the same time. B) the positively sloping aggregate supply curve shifts to the left after the aggregate demand curve shifts to the right. C) the positively sloping aggregate supply curve shifts to the left before the aggregate demand curve shifts to the right. D) the positively sloping aggregate supply curve does not shift to the right at the same time as the aggregate demand curve shifts to the left.
The economic argument supporting free trade is based on the principle of
a. absolute advantage. b. comparative advantage. c. protection. d. tariffs and quotas.
If aggregate supply meets aggregate demand in the vertical part of the AS curve, which of the following is a true statement about expansionary policies?
A) Monetary policy will be more effective in increasing output. B) Fiscal policy will be more effective in increasing output. C) Fiscal and monetary policy will be equally effective in increasing output. D) Both monetary and fiscal policies will only cause prices to increase.
As the amount of labor used in production increases, total product
a. increases at low levels of labor and decreases at high levels labor. b. increases at high levels of labor and decreases at low levels of labor. c. always increases. d. always decreases.