A firm that has the long-run cost curves shown in the graph above would not be able to do which one of the following?
A. exploit economies of scale
B. have an entry barrier protecting it from new entrants into the market
C. serve an increasing share of the market at lower and lower unit costs
D. attain lower unit costs by reducing its output level
Answer: D. attain lower unit costs by reducing its output level
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Which of the following is most likely to be an example of causation?
A) A student wins money by scratching a ticket with a particular coin. He decides to scratch all tickets with the same coin in the future. B) A soccer player scores 4 goals when he wears red socks. He concludes that the red socks helped him score the goals. C) A firm producing CFLs installs new machinery. The per-day production of CFLs increases. D) The crime rate is high in a country. The literacy rate is high as well.
Positive economics concerns
a. reflections of a country's values b. judgments on the merit of an economic outcome c. statements of fact concerning the economy d. analysis of what ought to be e. analysis of all good or positive market outcomes
Assume the economy is at point D. If RGDP demanded decreased to $15 trillion, how would AD2 shift?
a. It would shift to the right of AD2.
b. It would shift to the left of AD2 but remain to the right of AD1.
c. It would shift to the left of AD1.
d. It would not change.
The Consumer Price Index (CPI) relies on the calculation of:
A. prices of a fixed basket of goods that does not change often. B. prices of a variable basket of goods that changes frequently. C. the components of GDP that change annually. D. the components of GDP that do not change frequently.