Assume the short-run average total cost for a perfectly competitive industry increases as the output of the industry expands. In the long run, the industry supply curve will:
a. have a positive slope.
b. have a negative slope.
c. be perfectly horizontal.
d. be perfectly vertical.
a
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One way that countries can settle international payment obligations is
A) to run a balance of payments surplus. B) to run a balance of payments deficit. C) to use special drawing rights. D) to stop trading.
Suppose Szmul Hecht's farm A is 10 miles from the marketplace, while Frantisek Bass's farm is twice as far away. Ceteris paribus, We know then that the
a. present value of Hecht's farm is lower than the present value of Bass's farm b. differential rent Hecht receives is greater than the differential rent Bass receives c. differential rent Hecht receives is less than the differential rent Bass receives d. location rent Hecht receives is less than the location rent Bass receives e. present value of Hecht's farm is higher than the present value of Bass's farm
Answer the following statement(s) true (T) or false (F)
1. In a deposit-refund system, the deposit makes the polluter internalize the externality by absorbing the cost of any damage it might generate in advance. 2. To effectively internalize the externality, the deposit component of a deposit-refund system must raise the MPC of illegal waste disposal by the MECmeasured at the competitive output level. 3. Suppose that Firm 1 and Firm 2 face marginal abatement costs of MAC1 = 2.5A1 and MAC2 = 1.5A2, respectively, and that tradeable permits for pollution are issued such that a total of 20 units must be abated. If firm 1 abates 7.5 units, and firm 2 abates 12.5 units, then both firms have an incentive to trade. 4. If Firm X is abating 9 units with an MACX = 0.6AX, and Firm Y is abating 11 units with an MACY = 0.9AY, then Firm Y should do less of the abating and Firm X should do more in order to lower the overall costs of abatement.
Refer to the information above. What is the approximate value of the multiple of combined physical and human capital that the rich country must have in order to produce 10 times the output per person of the poor country?
A) 1000 B) 100 C) 25 D) 15