The short-run supply curve for a perfectly competitive firm is
A) the industry supply curve.
B) its rising portion of the average-variable-cost curve.
C) its entire marginal-cost curve.
D) its marginal-cost curve above the average-variable-cost curve.
E) its average-revenue curve.
Ans: D) its marginal-cost curve above the average-variable-cost curve.
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If the price of a DVD falls,
i. the demand curve for DVDs will shift rightward. ii. the demand curve for DVDs will not shift. iii. there will be a movement along the demand curve for DVDs. A) i only B) ii only C) iii only D) ii and iii E) i and iii
Discretionary policy advocates believe: a. that there is a high cost associated with the use of a discretionary policy
b. that self-corrective forces in an economy work slowly. c. that natural adjustments of wages and prices can help attain potential output. d. in rational expectations. e. that an active stabilization policy imposes troubling fluctuations in the price level and real GDP.