The positively-sloped part of the long-run average total cost curve is due to which of the following?
A) Diseconomies of scale.
B) Diminishing returns.
C) The firm being able to take advantage of large-scale production techniques as it expands its output.
D) The increase in productivity that results from specialization.
A
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According to the theory of purchasing power parity, the exchange rate between two countries reflects
A) the interest rates in the two countries. B) the unemployment rates in the two countries. C) government spending in the two countries. D) differences in the overall price levels in the two countries.
The effect time lag of fiscal policy refers to
A) the time needed for Congress to enact a policy. B) the delay in recognizing an economic problem. C) the time between the onset of a policy and when the policy has impact on the economy. D) the difficulty in getting the President and the Congress to agree on an appropriate policy.
Exhibit 9-3 Keynesian aggregate expenditures model
?
As shown in Exhibit 9-3, if GDP is $6 trillion, the economy experiences unplanned inventory:
A. depletion of $2 trillion. B. depletion of $6 trillion. C. accumulation of $2 trillion. D. accumulation of $6 trillion.
Suppose that a tire factory produces $825,000 of output and causes $70,000 worth of pollution as a result of production. The tire factory's official contribution to GDP would be ________ and its overall contribution to society would be ________.
A. $825,000; $895,000 B. $895,000; $825,000 C. $825,000; $755,000 D. $755,000; $825,000