Refer to Figure 5-3. At the competitive market equilibrium, for the last unit produced
A) the size of the external cost is Pn - Po. B) the size of the external cost is Pm - Po.
C) the size of the external benefit is Pn - Po. D) the size of the external benefit is Pm - Po.
D
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A firm’s fixed cost
A. does not vary with output. B. does not change between the short run and the long run. C. is generally a higher percentage of its total cost at high output quantities than at low output quantities. D. All of the above are true.
Which of the following is the most common form of a business organization?
A) corporation B) partnership C) sole proprietorship D) subchapter S corporation
If inflation expectations decline, then the short-run Phillips curve shifts
a. left, so that at any inflation rate unemployment is lower in the short run than before. b. right, so that at any inflation rate unemployment is lower in the short run than before. c. right, so that at any inflation rate unemployment is higher in the short run than before. d. left, so that at any inflation rate unemployment is higher in the short run than before.
In a certain country, it takes five of its 10workers to produce one barrel of wine butonly one worker to produce 1 yard ofcloth. If we graphed this country's PPF(placing wine on the vertical axis andcloth on the horizontal axis), the slope ofthe PPF would equal –1/5.
Answer the following statement(s) true (T) or false (F)