A firm's marginal resource cost curve is
a. horizontal only if the firm is a price taker in the product market
b. horizontal only if the firm is a price taker in the resource market
c. vertical only if the firm is a price taker in the product market
d. vertical only if the firm is a price taker in the resource market
e. horizontal only if the firm is a price taker in both the product and resource markets
B
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A transfer payment is a payment by the government to an individual
A) for an investment good. B) for which the government does not receive a good or service in return. C) for a debt owed. D) for a service. E) for a consumption good.
In general economic environments that correspond to higher levels of planned aggregate expenditure for a given level of Y have PAE curves that are:
A. higher on the expenditure diagram. B. lower on the expenditure diagram. C. at multiple points on the diagram. D. equivalent at point in the diagram.
In 2001, Costa Rican real GDP grew by 5 percent, well above the 2.5 percent trend line of its long-run annual average economic growth rate. In all probability, Costa Rica was in its ________ phase of the business cycle
a. recession b. recovery c. downturn d. prosperity e. trough
Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right.
If Candidate X is running against Candidate Z, by moving to the right Candidate X would:
A. force Z to move farther to the right in order to keep the same number of votes. B. lose some votes from voters on the far left but gain approximately the same number of votes from Z. C. win the election if the move placed X anywhere to the right of 25 on the spectrum. D. not lose any votes from voters on the left and gain some votes from Z.