The long-run equilibrium in a competitive market characterized by firms with identical costs is generally characterized by firms operating at efficient scale
a. True
b. False
Indicate whether the statement is true or false
True
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Why does investment spending rise and fall with the overall level of GDP in the economy?
What will be an ideal response?
In Figure 3-3 above, equilibrium income is
A) 400. B) 640. C) 666.67. D) 1,000. E) 2,400.
If MUX / PX < MUY / PY then this consumer:
a. will buy less of X and more of Y. b. will buy more of X and more of Y. c. is in equilibrium. d. will buy more of X and less of Y. e. will buy less of X and less of Y.
Part of the tremendous growth in China can be attributed to
a. loans received from the international financial bodies like World Bank, ADB. b. FDI inflows and its ability to save and invest nearly half of its GDP. c. financial aid received from foreign governments. d. development assistance inflows from developed countries.