Econ

Which of the following are determinants of aggregate demand? Multiple select question. Change in investment spending Change in government regulations Change in consumer wealth Change in input prices

Change in investment spending Change in consumer wealth

Which of the following are determinants of aggregate supply? Multiple select question. Changes in legal-institutional environments Changes in productivity Changes in consumer preferences Changes in input prices Changes in output prices

Changes in legal-institutional environments Changes in productivity Changes in input prices

In an increasing-cost industry, which of the following occur when an increase in product demand results in economic profits and attracts new firms to the industry? Multiple select question. Market supply decreases, driving up prices. Each firm's ATC curve shifts upward. Resource demand decreases, resulting in a leftward shift in each firm's ATC. Increased resource demand drives up resource prices.

Each firm's ATC curve shifts upward. Increased resource demand drives up resource prices.

Even if resource prices and technology are the same for all firms, which are the first to leave the industry when demand declines? Multiple select question. Firms with less-productive labor forces or higher transportation costs Firms with more productive labor forces or lower transportation costs More skillfully managed firms that tend to incur lower costs Less-skillfully managed firms that tend to incur higher costs

Firms with less-productive labor forces or higher transportation costs Less-skillfully managed firms that tend to incur higher costs

Which of the following statements are true about allocative efficiency? Multiple select question. It is impossible to produce net gains for society by altering the mix of goods and services produced. Producer surplus is maximized and consumer surplus is minimized. The marginal cost and marginal benefit of producing each unit of output is equal. The goods and services produced are those that society most wants to consume.

It is impossible to produce net gains for society by altering the mix of goods and services produced. The marginal cost and marginal benefit of producing each unit of output is equal. The goods and services produced are those that society most wants to consume.

Which of the following describes producer surplus? Multiple choice question. It is the difference between the minimum price producers are willing to accept for a product and the actual price producers receive for the product. It is the difference between the minimum price that producers are willing to pay for a product and the market price for the product. It is the minimum price that producers are willing to accept for a product and the market price for the product. It is the difference between the maximum price that producers are willing to accept for a product and the market price for the product.

It is the difference between the minimum price producers are willing to accept for a product and the actual price producers receive for the product.

In a constant-cost industry, what effect does an increase in demand have on industry output and equilibrium price in the long run? Multiple choice question. Output stays the same and price decreases. Output decreases and price increases. Output stays the same but price increases. Output increases but price stays the same.

Output increases but price stays the same.

In purely competitive markets, competition consists of firms entering industries and attempting to duplicate which features of profitable firms? Multiple select question. Production methods Management structures Cost structures Branding

Production methods Cost structures

What is one result of a decrease in aggregate demand? Multiple choice question. Potential output is less than actual output Higher expected returns on investment Full employment Recession

Recession

In this figure, the equality of price (P), marginal cost (MC) and minimum average total cost (ATC) at output Qf, indicates which of the following? Multiple choice question. That the firm is achieving productive and allocative efficiency That the firm is achieving only productive efficiency That the firm is achieving only allocative efficiency That the firm is achieving neither productive nor allocative efficiency

That the firm is achieving productive and allocative efficiency

Which of the following is an example of creative destruction? The collapse of Enron after an accounting scandal The forced breakup of the Bell Telephone system in the 1980s The transfer of the control of prisons to private businesses The replacement of compact discs by MP3s and streaming services

The replacement of compact discs by MP3s and streaming services

This figure represents a constant-cost industry where the entry or exodus of firms does not affect resource prices or unit costs. Therefore, in the long run, a decrease in demand causes ______. Multiple choice question. a contraction of output but no change in price an expansion of output with a change in price an expansion of output but no change in price a contraction of output with a change in price

a contraction of output but no change in price

An increase in productivity is related to ______. Multiple choice question. a decline in efficiency a reduction in per-unit costs a shift of the aggregate supply curve to the left a flattening of the aggregate supply curve

a reduction in per-unit costs

A change in one of the determinants of aggregate supply causes ______ the aggregate supply curve. Multiple choice question. a flattening of a shift of a movement along the vertical shape of

a shift of

A decrease in aggregate supply, assuming constant aggregate demand, will result in _______ inflation

cost-push

An increase in real interest rates will ______ investment spending and ______ borrowing costs. Multiple choice question. decrease; increase decrease; decrease increase; increase increase; decrease

decrease; increase

Cyclical unemployment and recession often arise from in aggregate demand.

decreases

A decline in the price level is called

deflation

The interest rate effect causes the aggregate demand to be ______. Multiple choice question. downward sloping vertical upward sloping flat

downward sloping

In the long-run, output prices and input prices are ______. Multiple choice question. unstable fixed self-correcting flexible

flexible

Higher resource prices will result in ______ total costs.

higher average

The equilibrium price level and equilibrium output is determined by the ______. Multiple choice question. intersection of the inflation rate and per-unit production cost point at which aggregate demand exceeds aggregate supply intersection of the aggregate demand curve and the aggregate supply curve point at which aggregate supply exceeds aggregate demand

intersection of the aggregate demand curve and the aggregate supply curve

An increase in real interest rates will ______ investment spending and ______ aggregate demand. Multiple choice question. lower; reduce lower; increase raise; increase raise; reduce

lower; reduce

Economic profit for a firm will result if: Multiple choice question. marginal revenue is less than marginal cost price exceeds average total cost marginal cost exceeds price exceeds price. price is less than average total cost

price exceeds average total cost

The blue shaded area in this figure represents ___. Multiple choice question. producer surplus economic surplus below the market price. consumer surplus deadweight loss

producer surplus

shift the aggregate supply curve to the right

resource

In purely competitive markets, efficiency can be temporarily disrupted and then restored by changes in:

resource supplies. consumer tastes. technological changes.

Changes that increase per-unit production costs will ______.

shift the aggregate supply curve to the left

Changes that increase per-unit production costs will ______. Multiple choice question. move along the aggregate supply curve shift the aggregate supply curve to the left shift the aggregate supply curve to the right

shift the aggregate supply curve to the left

Changes that reduce per-unit production costs will ______. Multiple choice question. shift the aggregate supply curve to the right move along the aggregate supply curve shift the aggregate supply curve to the left

shift the aggregate supply curve to the right

The intersection of the aggregate demand and aggregate supply curves determines ______. Multiple choice question. the long-run equilibrium price level and real GDP the equilibrium price level and equilibrium real interest rate the equilibrium real interest rate and equilibrium real GDP the equilibrium price level and equilibrium real G

the equilibrium price level and equilibrium real GDP