If an average cost curve is U-shaped, then:
a. costs per unit remainconstant throughout the entire range of production.
b. costs per unit fall throughout the entire range of production.
c. costs per unit increase throughout the entire range of production.
d. costs per unit first rise, then reach a maximum, and then begin to fall as output is increased.
e. costs per unit first fall, then reach a minimum, and then increase as output is increased.
e
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Suppose that the hypothetical country of Prairieland suffers from chronic scarcity of its staple grain, wheat.
a. true b. false
The testing of economic models facilitates
A) proving a model is false. B) proving a model is true. C) proving that one person's opinion is morally incorrect. D) proving that one society's legal structure is better than another country's.
The commercial banking system has excess reserves of $200,000. Then new loans of $800,000 are subsequently made, and the system ends up just meeting its reserve requirements. The required reserve ratio must be:
A. 10 percent B. 20 percent C. 25 percent D. 30 percent
When a perfectly competitive, well-functioning market is in equilibrium:
A. producer surplus is minimized. B. total surplus is zero. C. total surplus is maximized. D. consumer surplus is minimized.