A monopolistically competitive firm has excess capacity because in the
A) short run its MR exceeds its MC.
B) short run its ATC is less than its AVC.
C) long run its ATC exceeds its minimum ATC.
D) long run it makes an economic profit.
C
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What is the effect on the equilibrium price and equilibrium quantity of theater tickets if the price of an orchestra ticket increases and the wage rate paid to actorsactors increases?? The equilibrium price of a theater ticket ______ and the equilibrium quantity? ______.
A. always falls ; increases B. always falls; decreases C. rises; increases, decreases, or remains the same D. does not change; does not change E. rises, falls, or remains the same; increases
The high correlation between rapid growth in exports and rapid economic growth observed in several East Asia countries in recent decades
A) proves that export promoting trade policy leads to relatively rapid economic growth. B) proves that a free-trade orientation of trade policy results in rapid economic growth. C) proves that exports help growth, whereas imports impede growth. D) proves that trade policy is the most important policy area for promotion of economic development. E) does not prove that trade liberalization always leads to rapid economic growth.
Interest in environmental problems has intensified, perhaps because
a. for the first time in history in the 1970s people began to die from pollution-related diseases. b. rising incomes have caused people to be more concerned with the quality of their lives. c. the centrally planned economies are polluted. d. All of the above are true.
According to the idea of neutrality of money, hyperinflation in an economy should not adversely affect the health of that economy.
a. true b. false