As output expands beyond the break-even point, the vertical distance between the AVC and ATC will
A. get larger.
B. remain constant.
C. get smaller.
C. get smaller.
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A good deal of iron ore is mined in Michigan's Upper Peninsula. What is the relationship between the demand for iron ore and the cost of mining operations in Michigan?
A) Changes in the demand for iron ore are caused directly by changes in the cost of iron mining. B) Changes in the costs of iron mining are caused by changes in the demand for iron ore. C) There is no significant relationship because the demand for iron ore is determined by many different people, while the cost of mining the ore is determined by business executives. D) Nobody knows.
If health care spending is already on the flat-of-the-curve, it may not be possible to buy improved health status by increasing spending. In this situation, the best way to improve health status may be to
a. increase the availability of government health insurance. b. invest in biotechnology to determine the genetic factors that improve health. c. improve life-style decisions by reducing smoking, alcohol consumption, and drug use. d. improve access to medical care. e. improve overall educational attainment so people can better follow the advice from the medical community.
Jane is a top-level executive earning a high salary. Jane has just ordered a luxury car only to be told that she will have to wait three weeks for it to be delivered. Which of the following statements is TRUE?
A) The car is not a scarce good. B) The car is an economic good. C) The car is human capital. D) The car is an intangible good.
The long run is a period of time
a. during which at least one resource is fixed b. during which all resources are variable c. during which all resources are fixed d. less than one year e. greater than one year