Assume initially this firm is at point A. The following would be a reason for a movement to point B. 
A. Wages go up and per unit capital costs go up.
B. Both wages and per unit capital costs go down.
C. Output decreases.
D. Wages go down and per unit capital cost go up.
Answer: D
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Rent seeking activities by special interest groups result in
a. greater economic activity by promoting efficiency in government b. lower economic activity by diverting resources to less-productive or nonproductive uses c. a more equal distribution of income and wealth in the nation d. lower expenditures by government through an increase in taxes e. greater efficiency in the private economy and increased wealth for society
It is difficult to say whether welfare "causes" daughters from welfare families to be more likely to participate in the welfare system themselves because
a. the same factors that contribute to a mother's welfare status can also contribute to her daughter's welfare status b. no research has been done on this topic c. economists are unconcerned with questions about welfare status d. if two factors occur together, then one must cause the other e. it is possible that the daughter's welfare status "causes" the welfare programs
According to the relationship represented by the consumption function, governments can indirectly decrease consumption spending by
A. increasing taxes. B. decreasing transfers. C. decreasing taxes. D. decreasing government spending.
Which of the following is true of a natural monopoly? a. The quantity supplied in the market is less than the quantity at which the long-run average cost is minimum. b. The quantity supplied in the market is equal to the quantity at which the long-run average cost is minimum. c. The firm produces at the minimum point of the marginal cost curve
d. The quantity demanded in the market corresponds to the price at which the marginal revenue and marginal cost curves intersect.