Draw a graph of the short-run cost curves for a purely competitive firm that shows a short-run supply curve for the individual firm. Identify the shutdown point, the break-even point, the profit-maximizing point, and the levels of output associated with
those points.
What will be an ideal response?
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Preferential trade agreements have a beneficial trade-diversion effect when they reduce prices for traded goods and stimulate the volume of international trade
a. True b. False Indicate whether the statement is true or false
If food is measured on the horizontal axis of a budget line diagram, and clothing is measured on the vertical axis, an increase in
a. the price of food will decrease the slope (e.g., -9 instead of -6) of the budget line b. the price of food will increase the slope of the budget line c. income will decrease the slope of the budget line d. income will increase the slope of the budget line e. the price of clothing will decrease the slope of the budget line
If a consumer's income decreases, what will happen to the budget line?
A. It will become steeper. B. It will shift outward. C. It will become flatter. D. It will shift inward.
Each of the following is a requirement of a gold standard except
A. a nation defines its currency in terms of gold. B. a nation's money supply is made up of gold or gold certificates. C. a nation must maintain a fixed ratio between its gold stock and its money supply. D. there must be no barriers to the free flow of gold into and out of the country.