If an industry experiences economies of scale in production, then entry into the market by other firms is easy
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to the above figures. Externalities exist in both panels. After correcting for the externalities the prices should be
A) P1 and P3. B) P1 and P4. C) P2 and P4. D) P2 and P3.
Economists segment the business cycle into phases and the phase characterized by a relatively high level of real GDP, full employment, and inflation identifies
a. recovery b. demand-pull inflation c. stagflation d. expansion e. prosperity
Use the following table showing the consumption schedule for an economy to answer the next question.All figures are in billions of dollars. RGDPConsumption$440$450490490540530590570640610If gross investment plus government expenditures total $30 billion, net exports are zero, and there is a lump-sum tax of $30 billion at all levels of real GDP, then the after-tax equilibrium level of real GDP will be
A. $490 billion. B. $590 billion. C. $540 billion. D. $640 billion.
In 2007, the U.S. sold $73 million of cigarettes to Iran. Iran paid for these cigarettes using
A) dollars. B) rials, the Iranian currency. C) euros. D) pounds.