If long-run average total cost is rising, then the firm is experiencing economies of scale
a. True
b. False
Indicate whether the statement is true or false
False
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The current U.S. income tax structure has the highest marginal tax rate in U.S. history for individuals earning the highest incomes
Indicate whether the statement is true or false
If the current allocation of resources in the market for hammers is inefficient, then it must be the case that
a. producer surplus exceeds consumer surplus in the market for hammers. b. consumer surplus exceeds producer surplus in the market for hammers. c. the sum of consumer surplus and producer surplus could be increased by moving to a different allocation of resources. d. the costs that sellers of hammers are incurring could be reduced by moving to a different allocation of resources.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward
Most economists agree that
A. active policymaking is unlikely to exert sizable long-run effects on real Gross Domestic Product (GDP). B. passive policymaking is likely to exert sizable long-run effects on real Gross Domestic Product (GDP). C. active policymaking is likely to exert sizable long-run effects on real Gross Domestic Product (GDP). D. none of these