AP (Advanced Placement) Macroeconomics: Questions 548 - 552 of 750

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Question 548

Question

MCQ▾

Which of the statement/s hold true for the Bergson-Samuelson welfare function?

Choices

Choice (5)Response

a.

All competitive equilibria are welfare maxima

b.

All welfare maxima are competitive equilibria

c.

Both a. and b. are correct

d.

Question does not provide sufficient data or is vague

e.

None of the above

Question 549

Question

MCQ▾

How are normal profits calculated?

Choices

Choice (5)Response

a.

MR > MC

b.

c.

MR = MC

d.

e.

All of the above

Question 550

Question

MCQ▾

What is the shutdown condition?

Choices

Choice (5)Response

a.

b.

c.

– F > py-c (y) -F

d.

e.

All of the above

Question 551

Question

MCQ▾

In the Cobweb theory, what outcomes can be expected if the supply curve is steeper than the demand curve?

Choices

Choice (5)Response

a.

Outward spiral resulting in an unstable and divergent case

b.

Inward spiral resulting in a stable and convergent case

c.

Instantaneous change in change due to change in demand

d.

All of the above

e.

Question does not provide sufficient data or is vague

Question 552

Question

Assertion-Reason▾

Assertion(Ꭺ)

The demand and AC curves have a geometrical relationship

Reason(Ꭱ)

Price and output combinations lies on demand and AC curves

Choices

Choice (5)Response

a.

Both Ꭺ and Ꭱ are true and Ꭱ is the correct explanation of Ꭺ

b.

Both Ꭺ and Ꭱ are true but Ꭱ is NOT the correct explanation of Ꭺ

c.

Ꭺ is true but Ꭱ is false

d.

Ꭺ is false but Ꭱ is true

e.

Both Ꭺ and Ꭱ are false

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