In the long run, with an increase in the plant size, _____
A. the short-run average total cost curve shifts downward
B. the long-run average cost curve slopes downward
C. the short-run average total cost curve shifts downward if economies of scale exist
D. the average total cost of production rises
C The fall in the short-run average total cost means that the long-run average total cost decrease, which is the case when there are economies of scale.
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Which of the following is not a function of money?
A. Medium of exchange B. Income generation C. Standard of value D. Store of value
Use the following graph to answer the next question.
If U.S. citizens flock to Canada for summer vacations and buy more Canadian goods and services, ________.
A. the price of U.S. dollars in Canadian dollars will rise B. the price of U.S. dollars in Canadian dollars will fall C. the demand curve will shift right D. the supply curve will shift left
What happens when the price level falls?
A) Total planned real spending remains constant. B) Total planned real spending increases. C) Total planned real spending also falls. D) Planned real spending on goods increases but planned real spending on services falls.
Use the following graph, which shows the market for euros, to answer the next question. Q*=1 Euro.
Assume the U.S. and European governments adopt a system of flexible exchange rates. One U.S. dollar will purchase how many euros?
A. 1.11 euros B. 0.90 euro C. 1.90 euros D. 1.00 euro