Vertical integration:
A. is a spot exchange phenomenon.
B. occurs when a firm produces its own inputs.
C. occurs when a firm purchases its inputs in a market.
D. is attractive when relationship-specific exchange is unimportant.
Answer: B
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When a government intentionally lowers the value of its currency, that is called depreciation
a. True b. False Indicate whether the statement is true or false
Every point on the long-run average cost curve is
A. on a short-run marginal cost curve. B. on a short-run average variable cost curve. C. on a short-run average total cost curve. D. also a minimum point on a short-run average cost curve.
Suppose that productivity-enhancing technological progress affected more the production of chairs than the production of tables. This can be depicted using a production possibilities frontier in which
A) only the chair axis intercept increases. B) only the table axis intercept decreases. C) both intercepts increase; however, the chair intercept increases by more. D) both intercepts increase; however, the chair intercept increases by less.
A closed economy is a national economy that
A. has not established diplomatic relations with other national economies. B. has a stock market that is not open to traders from outside the country. C. has extensive trading and financial relationships with other national economies. D. doesn't interact economically with the rest of the world.