The short-run average total cost curve is U-shaped because average fixed costs ________ and average variable costs ________ eventually as quantity produced increases.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: C
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Given the total cost and total revenue curves in the above figure, what are the output levels at which the perfect competitor will incur economic losses?
A) below 80,000 bushels B) from 30,000 to 80,000 bushels C) below 30,000 bushels and over 80,000 bushels D) at 30,000 bushels and at 80,000 bushels
When the rate of appreciation of the nominal exchange rate equals the foreign inflation rate minus the domestic inflation rate, we say there is
A) relative purchasing power parity. B) purchasing power parity. C) a Phillips curve. D) an aggregate supply shock.
Proponents of a command economy argue that it promotes:
a. efficiency. b. equity. c. consumer sovereignty. d. economic growth.
The Congressional Budget Office and the Office of Management and Budget each produce deficit forecasts for a fiscal year. They use models that are mostly similar but have notable differences. As such, the disagreements are likely usually over
a. normative issues b. positive issues c. the mathematical calculations in an economic model d. whether microeconomics or macroeconomics is more important e. whether economic theory is useful in explaining the behavior of actors in the economy