Refer to the graph shown of average costs for a typical firm. The lowest per-unit costs for the industry could be achieved if:
A. one firm produced 1,000 units of output.
B. one firm produced 333 units of output.
C. three firms each produced 333 units of output.
D. two firms each produced 500 units of output.
Answer: A
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A speculative attack is:
A. a massive selling of domestic currency assets by domestic and foreign financial investors. B. a presumptive decrease in the officially fixed value of a currency. C. a presumptive increase in the officially fixed value of a currency. D. the imposition of tariffs and quotas to prevent the inflow of foreign goods.
Why does the production possibilities frontier have a bowed out shape rather than being a straight line?
What will be an ideal response?
Which of the following is likely to have the smallest price elasticity of demand?
A) an automobile B) a new automobile C) a new Ford automobile D) a new Ford Mustang
For people who live near a bus route, a subway station, or a commuter rail line, public transportation provides a substitute to driving their own cars
So, for these people, the cross-price elasticity of demand between gasoline and public transportation is A) zero. B) positive. C) negative. D) infinity.