A horizontal long-run average cost curve indicates
A. constant returns to scale.
B. constant marginal physical product.
C. diseconomies of scale.
D. economies of scale.
Answer: A
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Temporary Assistance to Needy Families is a government program with the goal of:
A. redistribution. B. economic growth. C. social insurance. D. None of these is true.
Which of the following is not true concerning economic growth?
A. It can be sustained in the short run but not the long run. B. It means that the production possibilities have expanded. C. It's the result of more resources or better technology. D. It is an increase in real GDP.
A consumer was at an optimum. She then discovers that the marginal utility per dollar spent on food is more than the marginal utility per dollar spent on movies. She knows then that
A) the price of movies must have decreased. B) the price of food must have increased. C) the price of movies must have increased or the price of food must have decreased. D) the price of movies must have decreased or the price of food must have increased.
In a market, buyers and sellers
A. exchange goods and services for money. B. compete with one another. C. are in the same place. D. undermine the proper functioning of the economy.