Generally speaking, the inclusion of transportation costs in the total costs of production has the effect of causing the LRAC curve to:
A) shift down.
B) flatten out.
C) shift up.
D) become steeper over the range on economies of scale.
C
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In the circular flow model, there are two types of markets: the ________ market and the ________ market
A) goods; factor B) supply; demand C) households; firms D) producers; consumers E) service; goods
Refer to Figure 18.1. Mutually beneficial terms of trade between the United States and Canada are
A) 1 hang glider for 1/2 of a bicycle. B) 1 hang glider for 1/4 of a bicycle. C) 1 hang glider for 3 bicycles. D) 1 bicycle for 8 hang gliders.
Refer to the figure above. If A forms a customs union with C, the quantity of trade creation will be
A) 100 units. B) 70 units. C) 30 units. D) None of the above.
Necessities tend to have inelastic demands, whereas luxuries tend to have elastic demands
a. True b. False Indicate whether the statement is true or false