Productive efficiency occurs in perfect competition because the firm produces at the minimum of the:
a. average fixed cost curve
b. average variable cost curve
c. average total cost curve
d. marginal revenue curve.
c
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What is the typical role of a central bank?
A) It serves as a lender of last resort. B) It serves as a bank for the national treasury. C) It regulates depository institutions. D) all of the above
Which of the following is not an advantage of user charges?
a. User charges help ration consumption of the taxed good. b. User charges are equitable from the standpoint of the benefit principle of taxation. c. User charges reveal consumer preferences for the taxed good. d. User chargers are easy to apply in cases where the benefits are spread diffusely.
Service sector outputs could be expected to increase in price less than industrial sector outputs as an economy grows
a. True b. False Indicate whether the statement is true or false
According to J-curve theory, imports initially increase after a country's currency depreciates, but in the long run imports decrease
Indicate whether the statement is true or false