If a purely competitive constant-cost industry is realizing economic profits, we can expect industry supply to:
A. increase, output to increase, price to decrease, and profits to decrease.
B. increase, output to increase, price to increase, and profits to decrease.
C. decrease, output to decrease, price to increase, and profits to increase.
D. increase, output to decrease, price to decrease, and profits to decrease.
Answer: A
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Why did India's economic growth rate lag far behind growth rates in South Korea, Japan, and Taiwan between 1960 and 1999?
A) Indian households saved too much and spent too little. B) Indian government officials opened the nation up to free international trade. C) India engaged in central economic planning. D) India has too small of a population to generate a highly specialized division of labor.
Which of the following statements is false?
A) The difference between average total cost and average fixed cost is average variable cost. B) The marginal cost curve intersects the average variable cost curve and the average total cost curve at their minimum points. C) Firms often refer to the process of lowering average fixed cost as "spreading the overhead." D) When marginal cost equals average total cost, average total cost is at its highest value.
The ________ traces out the points for which total quantity of goods produced equals total quantity of goods demanded
A) LM curve B) IS curve C) consumption function D) investment schedule
Even in democratic governments, we tend to have a problem with accountability due to the following reasons, except
What will be an ideal response?