The U-shaped average total cost curve is _____
A. a result of constant marginal returns.
B. a result of increasing marginal returns.
C. unrealistic because average total cost always increases as output increases.
D. the result of average fixed cost falling and decreasing marginal returns as output increases.
E. a result of firms' wanting to find the output level where cost is at its minimum.
Answer: D. the result of average fixed cost falling and decreasing marginal returns as output increases.
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With a two-part tariff:
A. consumers simply pay a fixed fee if they buy anything at all. B. consumers pay a fixed fee if they buy anything at all, plus a separate per-unit price for each unit they buy. C. consumers pay a fixed fee if they buy anything at all, plus an annual fee for the right to purchase anything. D. consumers simply pay a fee for the right to buy anything.
Under a fractional-reserve banking system, the money supply cannot change without any action from the Federal Reserve
a. True b. False Indicate whether the statement is true or false
The figure below shows the national market for mopeds in a small country. Dd and Sd are the domestic demand and supply curves of mopeds, respectively.
The figure below shows the marginal external benefit curve (MEB) of the country from the domestic production of mopeds.
The overall impact of the tariff on the nation would be
A. a gain of $5.75 million. B. a loss of $20.75 million. C. a loss of $15 million. D. a gain of $13.25 million.
For a demand schedule, which of the following is held constant?
A) relative prices B) quantity demanded C) quality of the good D) nominal prices