Other things being equal, if the average fixed cost curve shifts upward at all output levels:
A. the marginal cost curve shifts upward at all output levels.
B. the average variable cost curve shifts upward at all output levels.
C. the average total cost curve remains unchanged at all output levels.
D. the vertical distance between the average total cost curve and the average variable cost curve increases at all output levels.
Answer: D
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The demand for wheat from farm A is perfectly elastic because wheat from farm A is
A) a perfect complement for wheat from farm B. B) a normal good. C) a perfect substitute for wheat from farm B. D) an inferior good.
All of the following policies are ways for a country to promote long-run economic growth except
A) imposing stricter regulations to limit foreign direct investment. B) undergoing political reform to decrease corruption. C) enacting stronger laws to protect property rights. D) increasing vaccinations against infectious diseases.
Which of the following policies is a positive supply-side lever?
A. Lowering the minimum reserve requirement. B. Open market operations. C. Income transfers. D. Human capital investment.
Refer to the diagram. The combination of computers and bicycles shown by point F:
A. is unattainable given currently available resources and technology.
B. is attainable but implies that the economy is not using all its resources.
C. is irrelevant because it is inconsistent with consumer preferences.
D. suggests that opportunity costs are constant.