As a firm's output expands, the
A. ATC will reach a minimum before the AVC.
B. AVC will reach a minimum before the ATC.
C. ATC and AVC will reach minimums at the same output.
B. AVC will reach a minimum before the ATC.
You might also like to view...
Ricardian equivalence argues that when the government
A) increases taxes and raises its deficit, consumers anticipate that they will face higher taxes later to pay for the resulting government debt, thus people will raise their own private saving to offset the fall in government saving. B) cuts taxes and decreases its deficit, consumers anticipate that they will face higher taxes later to pay for the resulting government debt, thus people will raise their own private saving to offset the fall in government saving. C) cuts taxes and raises its surplus, consumers anticipate that they will face higher taxes later to pay for the resulting government debt, thus people will raise their own private saving to offset the fall in government saving. D) cuts taxes and raises its deficit, consumers anticipate that they will face lower taxes later to pay for the resulting government debt, thus people will raise their own private saving to offset the fall in government saving. E) cuts taxes and raises its deficit, consumers anticipate that they will face higher taxes later to pay for the resulting government debt, thus people will raise their own private saving to offset the fall in government saving.
Recall the Application about the productivity of large infrastructure investments to answer the following question(s). According to the Application, which of the following techniques do economists use to measure the productive effects of investments?
A. growth accounting B. opportunity costs. C. supply and demand analysis D. production possibility curves
Okun's law:
A. measures the trade-off between the rate of inflation and the rate of unemployment. B. indicates the number of years it will take for a constant rate of inflation to double the price level. C. quantifies the relationship between nominal and real incomes. D. shows the relationship between the unemployment rate and the size of the negative GDP gap.
DVD writers allow people to record TV shows in a high-quality format. They entered the market in 2002 at a price of $1000. By 2003, they were under $500. By the time they become part of the CPI market basket they are likely to be less than $250. Economists will argue that this type of issue
A. is well handled the by the BLS as they determine the CPI. B. leads to the CPI overstating the rate of inflation. C. leads to the CPI understating the rate of inflation. D. is irrelevant to CPI calculations.