AP (Advanced Placement) Macroeconomics: Questions 527 - 529 of 750

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Question 527

Question

MCQ▾

Under the real balance effect how does the homogeneity postulate treat demand and supply forces of goods?

Choices

Choice (5)Response

a.

Absolute changes in price level affects the real sector

b.

Interest rate is dependent on quantity of money

c.

Demand and supply are only affected by relative prices

d.

Demand and supply are affected by increase in money price

e.

None of the above

Question 528

Question

MCQ▾

In monopolistic competition, which factors determines the slope of the demand curve?

Choices

Choice (5)Response

a.

The number of seller in the market

b.

Similarity with other firm՚s products

c.

Barriers to entry

d.

All of the above

e.

None of the above

Question 529

Question

MCQ▾

Which of the following observations regarding cost curves hold true

i. Average cost curve (AC) initially falls with diminishing average fixed cost (AFC) and then rises due to increasing average variable cost (AVC)

ii. Marginal cost (MC) is equal to AC for the first unit of output

iii. MC is equal to AC when MC intersects AC curve from below

iv. AC intersects MC from below

Choices

Choice (5)Response

a.

i, ii and iii

b.

ii and iii

c.

iii and i

d.

All of the above

e.

Question does not provide sufficient data or is vague

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