Which of the following is true regarding the cost curves faced by a firm?
a. when MC > ATC, AVC must be falling
b. when MC > AVC, ATC must be rising
c. when MC > ATC, ATC must be rising
d. MC and ATC are the same for a perfectly competitive firm
e. when MC is a horizontal line, price is constant
C
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As the economy expands, tax revenues:
A. rise and transfer payments rise, causing the economy to expand by more than it would in the absence of automatic stabilizers. B. fall and transfer payments rise, causing the economy to expand by less than it would in the absence of automatic stabilizers. C. fall and transfer payments fall, causing the economy to expand by more than it would in the absence of automatic stabilizers. D. rise and transfer payments fall, causing the economy to expand by less than it would in the absence of automatic stabilizers.
Holding other factors constant, an increase in the capital stock ________ the real wage and ________ employment.
A. increases; increases B. decreases; increases C. increases; does not change D. increases; decreases
The World Bank
A) extends long-term loans for capital investment projects to developing nations. B) mediates contracts regarding minimum prices for various globally-traded commodities. C) determines the labor force participation rate in each of its member nations. D) determines the price level in each of its member nations.
Use the idea of the circular flow diagram to explain why the value of production equals total income equals total expenditure
What will be an ideal response?