When there is a permanent increase in market demand in a constant-cost industry, a firm's Short-run Average Total Cost Curve will
a. shift down
b. remain the same
c. shift up
d. become vertical
Answer: b. remain the same
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According to the textbook application, China’s demand for automobiles
a. is linked in part to the nation’s rising income and economic prosperity b. is limited because of the absence of automobile plants in China c. has declined because of the migration of people from urban to rural areas d. has grown slowly over the past several years
A country with an undervalued currency
A. will have a balance of payments deficit. B. will accumulate reserves of foreign currencies. C. will suffer losses of foreign reserves. D. must intervene in the foreign-exchange market to buy its own currency.
The demand for loanable funds curve shows the ________ relationship between the market interest rate and the quantity of loans demanded
a. positive b. negative c. direct d. independent
At a price of $299.95, the manufacturer of a portable gas-powered generator is willing to produce 19,000 units per quarter. At a price of $349.95, it is likely that the manufacturer will be willing to produce
a. less than 19,000 units per quarter. b. It is impossible to predict the effect of a higher price on the number of units of a product that a firm will be willing to produce. c. more than 19,000 units per quarter. d. 19,000 units per quarter.