If a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would
a. slope downward.
b. be horizontal.
c. slope upward.
d. slope downward for low output levels and upward for high output levels.
b
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Congress and the President passed a national health care policy. This is an example of
A) increasing the marginal cost of health care. B) the government using economic tools to make policy decisions. C) increasing the marginal benefit of health care. D) normative versus positive economics. E) answering the "how" question.
The expectation of future revaluation causes a balance of payments crisis marked by
A) a sharp rise in reserves and a fall in the home interest rate below the world interest rate. B) a sharp fall in reserves and an even bigger fall in the home interest rate below the world interest rate. C) a sharp fall in reserves and a rise in the home interest rate above the world interest rate. D) a sharp rise in reserves and an even greater rise in the home interest rate above the world interest. E) a sharp fall in reserves and an unchanged home interest rate.
The Soviet Union economy of the 1980s would best be classified as:
A. a command system. B. laissez-faire capitalism. C. a market system. D. pure capitalism.
If the elasticity of demand for tongue depressors is 0.5,
A. a 10% rise in the price of tongue depressors will lower quantity demanded by 50%. B. an increase in the price of tongue depressors will lower total revenue for sellers. C. a 10% increase in the price of tongue depressors will not change its total revenue. D. a 10% fall in the price of tongue depressors will raise quantity demanded by 5%.