Answer the following statement(s) true (T) or false (F)
1. In Average and Marginal Costs, the firm will reach peak production when the AFC curve reaches zero.
2. When a firm’s marginal product rises, its marginal cost rises in proportion.
3. When a firm’s marginal product is increasing, its average cost is decreasing.
4. In an appliance factory, the average cost of producing a refrigerator will be relatively high both when very few units are being produced and when production output is especially large.
5. Economists define the long run as anything more than one year in the future.
1. FALSE
2. FALSE
3. TRUE
4. TRUE
5. FALSE
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Which of the following makes a firm's resources hard to imitate?
a. Do not use resources that flow from the firm's unique history b. Keep the link between resources and advantage simple c. Resources emanate from a socially complex organizational structure d. All of the above
One reason scholars argue that government activity should be considered when evaluating the measured income distribution because: a. the lowest-income quintile has benefited from state-subsidized higher education more than have middle-income and higher income quintiles. b. the higher-income quintiles have benefited more than the poor from housing subsidies and Medicaid
c. the middle and higher-income quintiles have benefited more than the poor from state-subsidized airports, airlines, operas, and museums. d. the lowest-income quintile has benefited more than middle-income and upper-income quintiles from state-subsidized airports, airlines, operas, and museums.
When economists use the term Ceteris paribus, they are indicating that:
A. the relationship between two economic variables cannot be determined. B. the analysis is true for the individual but not for the economy as a whole. C. all other variables except the ones specified are assumed to be constant. D. their conclusions are based on normative economics rather than positive economic analysis.
If a graph has a line that shows the amount of outsourcing in the last ten years, it is known as
A) a pie chart. B) a time-series graph. C) a demand curve for outsourcing. D) a supply curve of outsourcing.