One explanation for the existence of an increasing-cost industry is:
A. Increasing marginal returns to labor occur
B. Firms produce beyond the point of minimum long-run average total costs
C. Perfectly elastic long-run supply schedules are observed in the industry
D. As the industry expands, prices are bid up for some factors of production
D. As the industry expands, prices are bid up for some factors of production
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In the short run, total spending affects ________, and in the long run total spending affects ________.
A. prices; output B. output; unemployment C. output; prices D. prices; unemployment
Fiat money has
A) little to no intrinsic value but is backed by the quantity of gold held by the central bank. B) little to no intrinsic value and is authorized by the central bank or governmental body. C) value, because it can be redeemed for gold by the central bank. D) a great intrinsic value that is independent of its use as money.
Refer to Figure 11-2. Based on the per-worker production function above, if the economy raises capital per hour worked from $35,000 to $40,000, by how much will real GDP per hour worked increase?
A) $150 B) $1,850 C) $2,000 D) $5,000
Consumer sovereignty refers to a situation in which there is only one "sovereign" consumer deciding what is to be produced in the market
Indicate whether the statement is true or false