Suppose that firms are located in a circle on an island. You are given transportation costs, fixed costs, variable costs, and demand (assume that customers are spread evenly along the circle). As transportation costs on the island rise,
A. the number of firms will fall in the long run.
B. the number of firms will rise in the long run.
C. the number of firms will stay the same in the long run.
D. It is impossible to tell from the information given.
Answer: B
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Valuing the quantities of goods produced in consecutive years using prices in both years and then averaging the percentage changes in the value of output is part of the ________ method of calculating real GDP
A) base-year B) moving-base-year C) chain-weighted output index D) fixed quantities/variable prices
An arbitrageur is an exporter that seeks to conduct countertrade in emerging markets.
a. true b. false
The word “economy” comes from the Greek word oikonomos, which means Question 39 options: “environment.” “production.” “one who manages a household.” “one who makes decisions.”
a. "environment"
b. "production"
c. "one who manages a household"
d. "one who makes decisions"
All of the following are deficit items in the balance of payments accounts EXCEPT
A. U.S. residents purchases of gold from foreign residents. B. exports of merchandise. C. U.S. tourists spending funds in Europe. D. U.S. purchases of foreign companies' stocks and bonds.