In the long run, a typical perfectly competitive firm will produce at the minimum point of its long-run average total cost curve and the minimum point of its short-run average total cost curve
a. True
b. False
A
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Suppose that the economy is operating below the full employment level of real GDP. If a liquidity trap exists, a(an) ________ policy would be most effective for solving the problem.
A. expansionary monetary policy B. contractionary fiscal policy C. expansionary fiscal policy D. contractionary monetary policy
Suppose the corn-producing industry of the U.S. is a price taker in the world market and government puts a ban on imports. The corn industry also receives subsidy from the home government. Then
A) social welfare will increase if the ban on imports is removed. B) everyone will be better off if both ban on imports and subsidy are removed. C) social efficiency will be improved if both ban on imports and subsidy are removed. D) the deadweight loss is reduced if subsidy is removed.
The balance of payments is:
A. the accounting of trade in financial assets. B. the accounting of trade in goods and capital. C. positive when a country has a trade deficit. D. negative when a country has a trade surplus.
Cattle served as money, first for the Romans, then for the Greeks
Indicate whether the statement is true or false