The third step of the four step process is to
a. identify the new equilibrium and then compare the original equilibrium price and quantity to the new equilibrium price and quantity.
b. decide whether the economic change being analyzed affects demand or supply.
c. draw a demand and supply model before the economic change took place.
d. decide whether the effect on demand or supply causes the curve to shift to the right or to the left, and sketch the new demand or supply curve on the diagram.
d. decide whether the effect on demand or supply causes the curve to shift to the right or to the left, and sketch the new demand or supply curve on the diagram.
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The gold standard period was
A) up until the first world war. B) between the first and second world wars. C) following the second world war until 1970. D) between 1954 and 1970. E) between 1814 and 1865.
Banks in the United States still cannot
A) own finance companies. B) be full-service brokers. C) offer their own mutual funds. D) offer merger advisory services.
Profit is a guaranteed return to the entrepreneur
Indicate whether the statement is true or false
How do levels of output affect the average total cost (ATC) curve?
a. The ATC curve is not affected by output levels, just by costs. b. ATC rises whenever total output increases. c. Average costs are low at low output and high at high output. d. At both very small and very large levels of output, ATC is high.