In the short run, if the average total cost of producing 4,000 shoes is $10 and the average total cost of producing 7,000 shoes is $9, then the most efficient point of production occurs at a quantity at least as great as 7,000
Indicate whether the statement is true or false
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Worsening terms of trade can be offset by
a. increased productivity. b. increased competition. c. reductions in domestic tariffs. d. increased property taxes.
Temporary Assistance to Needy Families is a government program with the goal of:
A. redistribution. B. economic growth. C. social insurance. D. None of these is true.
In some cases, selling pollution permits is a better method for reducing pollution than imposing a corrective tax because
a. it is hard to estimate the market demand curve and thus charge the "right" corrective tax. b. selling pollution permits create a net increase in pollution. c. Corrective taxes distort incentives. d. Corrective taxes provide greater flexibility to firms that can reduce pollution at a low cost.
Suppose the economy is at a point below its institutional production possibilities frontier. To improve this situation, Keynesian economists might propose that the government should __________ expenditures, which will cause the aggregate demand curve to shift to the __________ in an attempt to close this __________ gap
A) decrease; left; inflationary B) increase; right; inflationary C) decrease; right; inflationary D) increase; right; recessionary E) decrease; left; recessionary