If a perfectly competitive market is in equilibrium and then market demand increases, which of the following would happen?
a. producer surplus would definitely increase and consumer surplus may increase or decrease
b. producer surplus would definitely decrease and consumer surplus may increase or decrease
c. consumer surplus would definitely decrease and producer surplus may increase or decrease
d. consumer surplus would definitely increase and producer surplus may increase or decrease
e. producer and consumer surplus would remain unchanged
A
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Researchers at the Federal Reserve found that M2 money demand functions performed ________ in the 1980s, with M2 velocity moving ________ with the opportunity cost of holding M2
A) poorly; erratically B) poorly; closely C) well; erratically D) well; closely
Consider a hypothetical economy, whose GDP was $10,000 . consumption equaled $9,800, investment equaled $125, goods exported equaled $255, and goods imported equaled $500, in 2010 . Calculate the government spending in this economy during the year
a. $120 b. $380 c. $245 d. $200 e. $320
If some firms leave a monopolistically competitive market, the
a. remaining firms will charge a lower price to try to capture the released market share b. remaining firms' cost curves will shift upward and to the right c. remaining firms' demand curves will shift to the left d. market demand curve shifts to the right e. remaining firms will produce at a different point on their ATC curves
Which of the following statements is INCORRECT regarding the properties of information products?
A) Providing an information product entails incurring relatively high fixed costs. B) The average total cost curve for a firm that sells an information product slopes upward. C) The firm experiences economies of operation in the short run. D) In the long run, the producer earns sufficient revenue to cover the opportunity cost of capital.