A constant-cost industry is one in which:
A. resource prices fall as output is increased.
B. resource prices rise as output is increased.
C. resource prices remain unchanged as output is increased.
D. small and large levels of output entail the same total costs.
Answer: C
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A country with a real GDP per person similar to real GDP per person in the United States but with limited political freedom is generally considered to have
A) a lower standard of living than the United States. B) a larger Human Development Index because the other country still needs to develop more political freedom. C) the same standard of living as the United States. D) an understated GDP. E) an overstated nominal GDP.
Jonah lives in a small town where there is only one Mexican restaurant. Which of the following is likely to be true about the price elasticity of demand for meals at the Mexican restaurant?
A) Demand is likely to be perfectly elastic. B) Demand is likely to be relatively elastic. C) Demand is likely to be relatively inelastic. D) Demand is likely to be perfectly inelastic.
A decrease in the real interest rate in the United States will cause net capital outflows to ________ and cause the dollar to ________ relative to other currencies
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
An increase in the price of gasoline will
A. Shift the automobile demand curve to the left. B. Shift the gasoline demand curve to the right. C. Shift the automobile supply curve to the left. D. Shift the gasoline supply curve to the right.