GDP
A. is a flow measure since it represents the value of a flow of production over a year's period.
B. could be either a stock or flow measure depending upon whether it is measured in dollars or units of production.
C. is a stock measure since it represents the total market value.
D. is neither a stock or flow measure since it is measured in dollars.
Answer: A
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When a cartel breaks down and its members start cheating, the behavior in the industry becomes a
A) noncooperative game. B) zero-sum game. C) high stakes game. D) positive sum game.
Suppose that we learn that hotels in Los Angeles generally operate with an average vacancy rate of 15 percent (in other words, 85 percent of the hotel rooms are filled with guests). Given this information about excess capacity, we would judge this market to be
A. an oligopoly. B. a perfectly competitive market. C. a monopolistically competitive market. D. a monopoly.
The vertical distance between the average variable cost and average total cost curves
A. decreases as quantity increases. B. is everywhere equal to total fixed costs. C. increases at a decreasing rate. D. is everywhere equal to marginal cost.
Suppose that, as a firm's total production (or output) increases, the firm's manager correctly observes that an economy of scale is occurring. The manager must have noticed that:
a. ?per-unit costs increase as output increases b. ?per-unit costs decrease as output increases c. ?per-unit costs remain constant as output increases d. ?output does not affect per-unit costs