A critical assumption made by all economic models is that
a. few economic decision makers face constraints under capitalism
b. few economic decision makers face constraints under communism
c. every economic decision maker, except the extremely wealthy, faces constraints
d. every economic decision maker, except the federal government, faces constraints
e. every economic decision maker faces constraints under every economic system
E
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The average total cost curves for plants A, B, C and D are shown in the above figure. Which plant is best to use to produce 80 units per day?
A) plant A B) plant B C) plant C D) plant D
U.S. firms can produce and sell electric fans for $25. The United States can also import electric fans from China at $40 each and from Canada at $45 each. Electric fans made in the United States, China, and Canada are identical. Currently, the United States imposes a 30% tariff on imported electric fans. Now suppose that the United States forms a free-trade area (NAFTA) with Canada and Mexico. From which country will the United States import fans?
a. China b. Canada c. It will import fans from neither China nor Canada. d. It will import fans from both China and Canada.
When the dollar "cost" of a unit of foreign currency falls, the dollar is against the foreign currency.
a. depreciating b. appreciating c. equalizing d. holding its own
The demand for shoes will likely be price ________ while the demand for Sketchers Go Walk walking shoes will likely be price ________.
A. elastic; elastic B. inelastic; inelastic C. inelastic; elastic D. elastic; inelastic