Any point representing a cost and output combination that is below the long-run average cost curve:
a) may represent actual cost and production levels in the short run.
b) represents unattainable cost levels.
c) is attainable only when all factors are variable.
d) is attainable if the firm minimizes its costs according to the "principle of substitution".
e) represents less efficient cost levels than points on the long-run average cost curve.
Ans: b) represents unattainable cost levels.
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Checking deposits are
A) not part of money. B) part of money. C) small in volume relative to currency in circulation. D) quite different from checking accounts.
At one point along a PPF, 50 tons of coffee and 100 tons of bananas are produced. At another point along the same PPF, 30 tons of coffee and 140 tons of bananas are produced. The opportunity cost of a ton of coffee between these points is
A) 7/5 of a ton of bananas per ton of coffee. B) 1/2 of a ton of bananas per ton of coffee. C) 5/7 of a ton of bananas per ton of coffee. D) 2 tons of bananas per ton of coffee.
During the Great Depression, the economist who raised the loudest objections against the classical model was
a. Milton Friedman b. John Nash c. Adam Smith d. Ben Bernanke e. John Maynard Keynes
Many economists think that, in the long run, the economy tends to move toward
a. the natural or full-employment rate of unemployment. b. the natural or full-employment rate of inflation. c. a severe slump with high unemployment. d. an accelerating rate of inflation.