Each short-run average total cost curve is tangent at its lowest point to the long-run average cost curve
a. True
b. False
Indicate whether the statement is true or false
False
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The figure above shows the market for college education in the United States. If there is no external benefit from a college education and the government does not intervene in the market, then the equilibrium tuition of college education is
A) $13,000. B) $16,000. C) $20,000. D) $7,000. E) None of the above answers is correct.
If, as a perfectly competitive industry expands, it can supply larger quantities only at a higher long-run equilibrium price, it is
A) a decreasing-cost industry. B) a fixed-cost industry. C) a constant-cost industry. D) an increasing-cost industry.
The increase in government spending on unemployment insurance payments to workers who lose their jobs during a recession and the decrease in government spending on unemployment insurance payments to workers during an expansion is an example of
A) discretionary monetary policy. B) automatic stabilizers. C) automatic monetary policy. D) discretionary fiscal policy.
A policy of "beggar-thy-neighbor" is a policy that
A) often benefits the home country in the long run. B) often benefits the foreign country in the long run. C) often benefits foreign country in the short run. D) does not often benefits any country in the long run. E) benefits the home country's neighbors in the long run.