Suppose that a large and a small wind turbine have similar installation, operating, and maintenance costs, but a large turbine has four times the generating capacity but costs less than three times as much as a small turbine. The average cost of generating electricity with wind is:
A. constant at each output.
B. increasing as output increases.
C. decreasing as output increases.
D. at first decreasing and then increasing as output rises.
Answer: C
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Growth of real GDP per person is totally determined by the growth of average:
A. labor force participation and the share of income going to capital. B. labor force participation and the share of the population employed. C. labor productivity and the proportion of the population employed. D. labor productivity and the proportion of the population in the labor force.
Although finished goods are scarce, the inputs to produce them are not scarce.
Answer the following statement true (T) or false (F)
What is MFN status? How does the WTO reconcile the principle of equal treatment with the preferential treatment created by regional trade agreements?
What will be an ideal response?
Which of the following is not correct?
a. Antitrust laws may prevent mergers that would actually raise social welfare. b. Public ownership is the most common public policy toward monopolies in the United States. c. Regulation is a common strategy for a natural monopoly. d. Sometimes the best public policy toward a monopoly may be to do nothing.