A long-run ATC curve shows:
A. which size firm can capture the lowest costs per unit for an industry.
B. what size firms can capture economies of scale by expanding.
C. the minimum average total cost possible for every possible size firm across an industry.
D. All of these are true.
Answer: D
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Which of the following experiments will yield observations that would allow one to calculate the marginal physical product of labor?
A. Increase the number of lumberjacks with chain saws and observe the change in output of cut trees B. Increase the number of workers on an assembly line and record the change in output C. Increase the number of data entry operators and computers and calculate the extra output. D. Check the number of workers before and after a given time period.
Suppose three neighbors must vote on the installation of a traffic light that costs $210. The cost of the light will be shared by all three
Voter A values the light at $50; voter B values the light at $50; and voter C (who drives the most) values the light at $200. If the voting rule is that the majority wins, does the light get purchased? Is it efficient to purchase the light?
Given U.S. tax laws, persistently high inflation may result in
a. They increase growth because particulates provide an additional carbon source b. faster economic growth because the after-tax real interest rate is higher. c. slower economic growth because the after-tax nominal interest rate is lower. d. faster economic growth because the after-tax nominal interest rate is higher.