A positive temporary supply side shock will:
A. increase the level of potential output in the long run.
B. decrease the price level in the long run.
C. increase the price level in the long run.
D. have no effect in the long run.
Answer: D
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A government grant that gives an inventor the exclusive right or privilege to make, use, or sell his or her invention is known as
A) a negative externality. B) a patent. C) a protectionism clause. D) a positive externality.
Suppose a monopoly can sell 10 units of output for $21. In order to sell 11 units of output, the price must fall to $20. What is the marginal revenue of the 11th unit?
A) $41 B) $20 C) $10 D) $1 E) $220
Production technology determines the relationship of total cost to outputs.
Answer the following statement true (T) or false (F)
If the number of automobile manufacturers decreases:
A. the demand for automobiles increases. B. the demand for automobiles decreases. C. the supply of automobiles increases. D. the supply of automobiles decreases.