A firm's average fixed cost curve is:
a. U-shaped
b. a curve that increases as output expands.
c. a vertical line.
d. a curve that declines as output expands and approaches the X-axis when output is very large.
d
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What could Keynes have meant by his now famous statement, "in the long run we are all dead?"
A) Government intervention is destabilizing, will lead to slower growth in the long run, and will prevent an economy from self-regulating. B) Government intervention in the economy is necessary in times of recession because an economy rarely restores itself to full employment. C) Government intervention in the economy is useless because it takes too long to take effect. D) Government intervention in the economy is only effective if it is not erratic.
Which of the following is the best example of a network externality?
A. The Internet B. Parks C. Pollution D. Museums
If a good is considered a normal good, the demand curve will shift ________ when income increases because ________
A) right; the income and substitution effects move in the same direction. B) right; the income and substitution effects move in the opposite direction. C) left; the income and substitution effects move in the same direction. D) left; the income and substitution effects move in the opposite direction.
All else equal, a decrease in the supply of labor will shift the labor supply curve to the left and decrease the equilibrium wage
Indicate whether the statement is true or false