Related to the Economics in Practice on page 198: If firms have long-run average cost curves with a long, flat section
A. the optimal number of firms in the industry is one.
B. their long run supply curves are downward sloping.
C. it is impossible to predict the size of the firm.
D. larger firms have a cost advantage over smaller firms.
Answer: C
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If the government raises income taxes, then the labor
A) supply curve shifts rightward. B) demand curve shifts leftward. C) demand curve shifts rightward. D) supply curve shifts leftward. E) Both answers B and D are correct.
In one northern town, the snowmobilers enjoy snow while non-snowmobilers hate it. When the town gets two feet of fresh snow, which group is made wealthier?
A) Non-snowmobilers B) Snowmobilers C) Everybody D) Nobody
Figure 3-19
Refer to . Buyers who value this good less than price are represented by which line segment?
a.
AC.
b.
CE.
c.
BC.
d.
CD.
Compared to the typical high-school graduate, the typical college graduate has greater human capital and thus more options for both low-skill and high-skill jobs. This is called:
A. the signaling effect of a college education. B. the learning effect of a college education. C. the discriminatory effect of a college education. D. All of these