The effect of spreading out the fixed costs outweighing the effect of diminishing returns is illustrated by the ________ average cost curve ________.
A. long-run; decreasing
B. long-run; increasing
C. short-run; decreasing
D. short-run; increasing
Answer: C
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Technological progress occurs when the economy gets more output
A) without any more capital or labor. B) by using more capital but not more workers. C) by using more capital per worker. D) by using more labor but not more capital.
The value added of a producer is the
A) total amount for which all its products sell minus its change in inventories. B) value of its total sales once externalities are accounted for. C) value of its output minus the value of the inputs it purchases from other producers. D) quality-adjusted amount of its total sales less any commissions paid.
Income tax payments
a. fall during periods of prosperity, thus reducing inflationary pressures b. fall during periods of prosperity, thus increasing inflationary pressures c. rise during periods of prosperity, thus reducing inflationary pressures d. fall during recessions, thus increasing the problem of unemployment e. rise during recessions, thus increasing the problem of unemployment
In the orange market, what impact would an increase in the price of oil that orange growers burn to keep oranges from freezing in the winter have on the market?
a. It would shift the supply curve to the right. b. It would shift the supply curve to the left. c. It would shift the demand curve to the left. d. It would shift the demand curve to the right.