The informal sector is characterized by
a. firms that don't pay their taxes
b. firms from other countries that are not subject to local laws
c. firms producing illegal goods
d. firms that are small and often able to avoid many government regulations
e. all of the above
D
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A firm's average total cost is $100, its average variable cost is $90, and its total fixed cost is $1,000. Its output is
A) less than 70 units. B) between 70 and 120 units. C) between 120 and 170 units. D) more than 170 units.
Which of the following is a consequence of the formation of a cartel? a. Output produced will be lower than the equilibrium output. b. Prices charged will be lower than the equilibrium price
c. Consumer surplus will increase. d. Products will be more innovative.
Which of the following is NOT among the pressures imposed by the fixed-rate system on the government of a country that has ongoing international payments deficits?
A. The country faces a limit on its ability to sustain deficits. B. The country's money supply increases substantially resulting in a higher inflation. C. The country suffers deterioration in its creditworthiness. D. If the country cannot sterilize, then its money supply will decrease.
Scarcity requires that we
A) produce efficiently. B) learn to limit our wants. C) have the most rapid economic growth possible. D) have unlimited resources. E) make choices about what goods and services to produce.