As output decreases, in the short run
A. marginal cost eventually decreases.
B. the difference between average total cost and average variable cost increases.
C. the difference between total cost and average variable cost increases.
D. All of the above are correct.
Answer: B
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Purchasing a season pass to the local symphony
A) is an example of first degree price discrimination. B) is an example of second degree price discrimination. C) is an example of third degree price discrimination. D) All of the above.
Carefully explain the difference between forecasting variables separately versus forecasting a vector of time series variables. Mention how you choose optimal lag lengths in each case
Part of your essay should deal with multiperiod forecasts and different methods that can be used in that situation. Finally address the difference between VARS and VECM. What will be an ideal response?
Which of the following statements is correct? Most economists
A. think that protectionism is a vital and necessary component in a nation's economic policy. B. prefer to let the market forces of supply and demand solve trade imbalances. C. believe that tariffs and quotas are efficient and effective measures. D. believe product standards, export subsidies, and exchange controls are desirable trade practices, but quotas and tariffs only provoke retaliation.
If the actual price level is lower than the expected price level, an economy will contract in the short run.
a. true b. false