In Figure 21.4, a firm that produces over 800 units of output should choose a plant with which short-run average total cost function?
A. ATC3 only.
B. Either ATC2 or ATC3.
C. ATC1 only.
D. ATC2 only.
Answer: A
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Heterogeneity and the dynamic nature of labor markets are the principal causes of ________ unemployment.
A. chronic B. cyclical C. structural D. frictional
How will the exchange rate (foreign currency per dollar) respond to a decrease in the relative rate of productivity growth in the United States in the long run?
A) Exchange rates will fall. B) Exchange rates will be unaffected by changes in the relative rate of productivity growth in the United States, both in the short run and in the long run. C) Exchange rates will rise. D) The exchange rate will be affected in the short run, but not in the long run.
How does an increase in interest rates affect net exports?
What will be an ideal response?
The slope of a production possibilities curve is based on opportunity cost.
a. true b. false