Diseconomies of scale are illustrated by:
A) a downward sloping long-run average cost curve.
B) a flat long-run average cost curve.
C) an upward-sloping long-run average cost curve.
D) an upward-sloping short-run average total cost curve.
C
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Use the following graph to answer the next question.
Suppose the economy is currently in equilibrium at output level Q2, but full-employment output is at level Q1. If the government fails to enact fiscal policy and no other conditions change, the eventual price level will most likely be closest to
A. P0. B. P1. C. P2. D. P3.
Refer to Figure 13.1. If the voting method used to select a location for the recreation center is the plurality-rule method, the recreation center will be built in
A) Desert Sands. B) Glacier Cove. C) Mountain View. D) Oceanside.
Answer the following statement(s) true (T) or false (F)
1. The major reason education leads to higher wages is due to signaling. 2. Attending college can be seen as an individual’s attempt to raise their level of human capital. 3. Since mowing ones lawn is not done at their workplace, it is viewed as a use of their leisure time and thus (somewhat paradoxically) falls into the category of leisure. 4. One deficiency of labor-leisure indifference curve analysis is that because indifference curves are always tangent to the worker’s budget line, the model can not explain why some people choose not to work. 5. A firm’s marginal revenue product of labor equals the marginal product of labor times the cost per unit of the labor.
The normal rate of return on equity capital is also known as
a. the explicit cost of capital. b. the marginal cost of capital. c. economic profit. d. the opportunity cost of capital.