If economies of scale are significant, the typical firm will not reach the minimum point on its long-run average cost curve until it has produced a large fraction of industry sales
Indicate whether the statement is true or false
TRUE
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Which of the following events will increase short-run aggregate supply?
A) an advance in technology B) an increase in resource prices C) an increase in the natural unemployment rate D) an increase in foreign income
Which of the following statements is inconsistent with Say's Law?
A) The economy has flexible wages and prices. B) The economy will produces at the full employment level of output. C) The economy has an environment of "laissez faire." D) The economy's level of saving depends solely on the level of income.
One consequence of an increase in government spending is that
a. autonomous consumption will increase b. autonomous consumption and investment spending will decrease c. the increase in GDP will equal the size of the amount of spending d. autonomous consumption and investment spending will increase e. investment spending will increase
Suppose a policy change generates $200,000 of benefits for low-income families and $175,000 of costs for high-income and middle-class families. We can best describe the change as
A. potentially efficient. B. equitable. C. Pareto efficient. D. inefficient.