In the typical AC curve, the downward-sloping part is attributable to
A. spreading fixed costs over larger outputs and increasing returns to the variable inputs.
B. declining administrative costs as output increases.
C. falling fixed costs.
D. rising total product.
Answer: A
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When toilet paper sales increase, quarterly economic growth tends to rise. This is an example of:
A. two variables that are negatively correlated. B. the presence of ceteris paribus. C. correlation without causation. D. causation with no correlation.
Which of the following statements is true?
a. The doctrine of laissez-faire advocates an economic system with extensive government intervention and little individual decision-making. b. In capitalism income is distributed on the basis of need. c. Adam Smith was the father of socialism. d. Most real-world economies are mixed economic systems. e. The "invisible hand" refers to government economic control.
If the spending multiplier equals 6 and equilibrium real GDP is $32 billion below potential real GDP, then total planned expenditures need to decrease by approximately $5.33 billion to close the recessionary gap
a. True b. False Indicate whether the statement is true or false
A perfectly competitive firm will always maximize profits by producing where
a. per-unit costs are lowest. b. total costs and total revenue are equal. c. P = MC. d. P = AC.