A firm that is technologically efficient
A) must be economically efficient, but a firm that is economically efficient is not always technologically efficient.
B) must be economically efficient, and a firm that is economically efficient must always be technologically efficient.
C) is not always economically efficient, and a firm that is economically efficient is not always technologically efficient.
D) is not always economically efficient, but a firm that is economically efficient must always be technologically efficient.
D
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The trade barrier that involves levying one tariff rate for a certain amount of an imported commodity and a higher tariff rate for quantities in excess of that amount is the
a. export subsidy. b. import subsidy. c. tariff quota. d. quality standards requirement.
You notice that the price of butter rises and then falls. The best explanation for this is that:
A. demand for butter increased causing price to rise, which attracted other firms to enter the market causing supply to increase, which caused the price to go back down. B. demand for butter decreased causing price to rise, which attracted other firms to enter the market causing supply to increase, which caused the price to go back down. C. demand for butter increased causing price to rise, which induced other firms to exit the market causing supply to decrease, which caused the price to go back down. D. demand for butter increased causing price to rise, which attracted other firms to enter the market causing supply to decrease, which caused the price to go back down.
According to the Lucas supply function, the economy will produce ________ output when prices are unexpectedly ________ than when prices are at their expected level.
A. the same; lower B. the same; higher C. more; higher D. less; higher
Saving is $15 billion at the $125 billion equilibrium level of output in a closed, private economy. Actual investment must be:
A. Less than saving B. Greater than saving C. Equal to $15 billion D. Equal to $125 billion