An unregulated natural monopolist will produce the quantity at which
A. average total costs are minimized.
B. the long-run average cost curve intersects the demand curve.
C. marginal cost equals the long run average cost curve.
D. marginal cost equals marginal revenue.
Answer: D
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The population is 1,000 million, the labor force is 750 million, and the number of unemployed is 30 million. What is the unemployment rate?
A) 4 percent B) 3 percent C) 10 percent D) 7.5 percent
If the U.S. dollar becomes weaker in international foreign exchange markets, imported goods become more expensive. One result of this is that
A) domestic employment rises. B) net exports increase. C) real Gross Domestic Product (GDP) increases. D) net exports decrease.
If a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would
a. slope downward. b. be horizontal. c. slope upward. d. slope downward for low output levels and upward for high output levels.
The Laffer curve shows as tax rates rise, tax revenue:
A. rises. B. first rises, then falls, and then rises again. C. falls. D. first rises, and then falls.