If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be a(n):
a. decreasing cost industry.
b. increasing cost industry.
c. constant cost industry.
d. industry characterized by economies of scale.
c
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All else being equal, if the rate of growth in productivity in Spain is greater than the rate of growth in productivity in the United States, the euro
A) will decrease in value relative the U.S. dollar. B) will nominally depreciate against the dollar, but its real value relative to the dollar will remain unchanged. C) will increase in value relative to the U.S. dollar. D) will nominally appreciate against the dollar, but its real value relative to the dollar will remain unchanged.
An increase in the value of the U.S. dollar relative to the Japanese yen would be ________ for Japanese owners of U.S
houses who wish to sell those houses, and ________ for Japanese manufacturers operating factories in the United States that export their products back to Japan. A) good news; bad news B) good news; good news C) bad news; bad news D) bad news; good news
Rational ignorance
A) refers to attempts by special interests to use government action to make themselves better off at the expense of others. B) explains the Arrow impossibility theorem. C) helps to explain why rent seeking by special interest groups occurs. D) explains why consumers ignore sunk costs when they vote.
The fall of actual GDP below the level of potential GDP is a signal that the economy is in a recession
a. True b. False Indicate whether the statement is true or false