Which of the following conditions best explain the short-run economies of operation associated with production of an information product?
A. AVC is constant, and AFC slopes downward, so that ATC slopes downward.
B. AFC is constant, and MC slopes downward, so that AVC slopes downward.
C. AVC slopes downward, and AFC is constant, so that ATC slopes downward.
D. MC is constant, and MC slopes upward, so that AVC slopes upward.
Answer: A
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A closed economy refers to an economy in which:
A. all goods are produced and sold domestically. B. all goods are consumed domestically. C. intermediate goods are sold domestically. D. a country exports, but does not allow imports.
In the long-run AS-AD model,
a. the position of the AD curve determines output b. the self-correcting mechanism of the economy is irrelevant c. the AS curve shifts leftward whenever the economy is growing d. the position of the AD curve determines the price level e. output fluctuates a great deal
Which of the following is the term used when average costs go down as the measure of output goes up?
a. Relative advantage b. Absolute advantage c. Comparative advantage d. Economies of scale
Which of these arises when an individual listens to loud music late in the night?
a. An externality b. The free-rider problem c. An asymmetric information problem d. The common-pool problem