In the figure above, moving from production at point d to production at point a requires
A) technological change.
B) a decrease in unemployment.
C) decreasing the output of consumer goods in order to boost the output of capital goods.
D) both capital accumulation and a decrease in unemployment.
C
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If a firm experiences constant returns to scale throughout:
a. the long-run average-total-cost curve is negatively sloped. b. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their positively sloped portion. c. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at their minimum points. d. the short-run average-total-cost curves are tangential to the long-run average-total-cost curve at a point on their negatively sloped portion. e. the long-run average-total-cost curve is positively sloped.
Specialization and exchange
a. generally leads to increased production of some goods at the cost of decreased production of other goods b. causes the production possibilities frontier to shift inward c. increases total production of every good only if the total amount of resources also increases d. alters the allocation of production among individuals or nations, but does not alter total production levels e. allows greater total production of every good without an increase in the total amount of resources
The Justice Department and the Federal Trade Commission are likely to oppose mergers
a. that seem likely to increase efficiency. b. that create a larger firm with economies of scale in a contestable market. c. which will help one of the merging firms out of financial difficulties. d. which threaten to reduce competition.
The airline industry is an example of an oligopoly.
Answer the following statement true (T) or false (F)