The labels for the axes of an aggregate supply curve should be ________.
A. real domestic output for the horizontal axis and price level for the vertical axis
B. real domestic output for the vertical axis and price level for the horizontal axis
C. real employment for the vertical axis and price level for the horizontal axis
D. aggregate demand for the vertical axis and real national output for the horizontal axis
Answer: A
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Consider the following economic agents:
a. the government b. consumers c. producers Who, in a modern mixed economy, decides what goods and services will be produced with the scarce resources available in that economy? A) producers B) consumers C) the government, consumers, and producers D) the government E) consumers and producers
Refer to Figure 5-9. An efficient way to get the firm to produce the socially optimal output level is
A) to grant a subsidy to enable the industry to internalize the external costs of production. B) to assign property rights to the firms in the industry. C) to impose a tax to make the industry bear the external costs it creates. D) for government to set a quota on the quantity of toilet paper that the toilet paper industry can produce.