If both supply and demand for a good increase, which of the following will definitely happen?
a. Equilibrium price will remain the same
b. Equilibrium price will increase
c. Equilibrium price will decrease
d. Equilibrium quantity will increase
e. Equilibrium quantity will decrease
d
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If the government increases the income tax rate they likely intend for:
A. C to decrease, shifting aggregate demand to the left. B. C to increase, shifting aggregate demand to the right. C. I to increase, shifting aggregate demand to the right. D. G to increase, shifting aggregate demand to the right.
In what decade did the U.S. government first decide to intervene in the farm economy?
a. 1950s b. 1930s c. 1970s d. 1960s e. 1980s
When the Motor Carrier Act of 1980 was made into law, new firms entered into the trucking industry. This action by new trucking firms confirms that:
A. the trucking industry was earning profits in the long run prior to the entry of the new firms. B. the trucking industry was earning losses in the long run prior to the entry of the new firms. C. the trucking industry was earning profits as a result of the entry of the new firms. D. the trucking industry was earning losses before and after the entry of the new firms.
The long-run average total cost curve of a natural monopolist
A. Is U-shaped. B. Is below the long-run marginal cost curve in the relevant range of production. C. Reflects diseconomies of scale. D. Is downward-sloping in the relevant range of production.