After trade opens, the short run impact on the income of the specific factor that is relatively scarce will be
A) a decrease in its income.
B) an increase in its income.
C) no change in its income.
D) indeterminate, income effects are not possible to know.
A
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The average total cost curves for Plant 1, ATC0, and Plant 2, ATC1, are shown in the figure above. Over what range of output is it efficient to operate Plant 2?
A) 0-20 B) 0-25 C) 20-25 D) greater than 25
The most liquid securities traded in the capital market are
A) corporate bonds. B) municipal bonds. C) U.S. Treasury bonds. D) mortgage-backed securities.
If the price of a good is increased and total revenue received from the sale of this good increases, then the price elasticity of demand for the good is
A) elastic. B) inelastic. C) unitary. D) None of the above
The "greenhouse effect" is predicted to
a. lead to the next ice age. b. raise global temperature. c. pollute the oceans. d. break the edifice complex by the turn of the century.