Forecasts based on the extrapolation of observed trends and relationships are likely to be accurate, if ________
A) changes in expectations are properly considered
B) policy actions are anticipated
C) economic behavior is guided by rational expectations
D) policy changes are understood to be permanent
A
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A(n) __________ in exports by the United States results in a(n) __________ in the supply of foreign exchange
A) increase; increase B) decrease; increase C) increase; decrease D) None of the above.
When production is characterized by persistently declining long-run average costs as output increases
A) the costs of production are greater when competition exists than when a single firm produces a good. B) it is impossible for two firms to compete in the market. C) the costs are lower if a single firm exists, and even if the firm is unregulated, price will still be lower with a single firm. D) there is no need for the government to limit competition by licensing requirements.
Which of the following statements is NOT true about the production function?
A) It gives the maximum output that can be obtained for a given level of inputs. B) A new production function does not have to be developed when there is technical progress since technology is included in the function. C) The production function depends upon the level of technology available to the firm. D) It specifies the cost of inputs necessary to produce a certain level of outputs.
Refer to the information provided in Figure 16.4 below to answer the question(s) that follow.Los Angeles International Airport (LAX) is located next to Playa Del Rey. The noise from air traffic negatively affects individuals living in Playa Del Rey, however, this cost is not considered by airlines or air travelers. The airlines feel they have a right to use the airspace while the individuals living in Playa Del Rey feel they have the right to quiet. The following diagram depicts the marginal costs and marginal benefits associated with air travel.
Figure 16.4Refer to Figure 16.4. Suppose the government assigns property rights to the airlines, then the
airlines and the residents engage in negotiations. The ________ of air travel is 100 units. A. resulting efficient level B. minimum allowable level C. government-regulated level D. maximum allowable level