The average total cost curve of a natural monopoly is always
A. upward sloping.
B. horizontal.
C. downward sloping at all points.
D. downward sloping where it crosses the market demand curve for the good.
Answer: D
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Table 7.1 exemplifies the principle of
A) diminishing returns. B) marginal costs. C) full employment equilibrium. D) real vs. nominal costs.
Which of the following societies is the most likely to have a traditional economy?
a. The United States. b. The Inuit (native people of Northern Canada). c. Cuba under Castro's rule. d. Modern-day Hong Kong.
As the marginal propensity to consume (MPC) increases, the spending multiplier
a. increases. b. decreases. c. remains constant. d. becomes indefinable.
Some proponents of trade sanctions argue for changes in policy because they fear low standards will be used to capture markets and foreign investment. While theoretically possible, there is little or no support for the view that countries use low labor standards this way, because
A) countries with low labor standards generally have trouble attracting foreign investment. B) low standards can change a country's comparative advantage. C) it is impossible to lower labor standards. D) countries would not have an incentive to have low standards.