The long-run supply curve in a competitive market is upward sloping

Indicate whether the statement is true or false

False. The shape of the long-run supply curve will depend on how similar the firms are and on the relationship between factor prices and total industry output.

Economics

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Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising

If contractionary policy is used to move the economy back to long run equilibrium, this would be depicted as a movement from ________ using the static AD-AS model in the figure above. A) D to C B) A to E C) C to B D) B to A E) E to A

Economics

The division of labor facilitates productivity increases for all of the following reasons, except one. Which is the exception?

a. It allows people to do those tasks for which they have the greatest natural ability. b. Workers get better at tasks, the more they repeat them. c. The more experience workers gain by specializing in a task, the more likely they will enjoy that task. d. More sophisticated production techniques are introduced. e. The division of labor often permits the introduction of labor-saving machinery.

Economics