Short run average expenditure curves are tangent at their lowest point to the long run average cost curve.
Answer the following statement true (T) or false (F)
False
Rationale: They are tangent, but not usually at their lowest point.
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Federal support for road building into publicly owned commercial forests has caused
a. an increase in the supply of timber. b. an increase in the demand for timber. c. higher timber prices. d. a shortage of timber. e. All of the above.
The reason why self-correction works to close a recessionary gap is because: a. a labor shortage causes wages to increase. b. a labor surplus causes wages to increase. c. a labor shortage causes wages to fall
d. a labor surplus causes wages to fall. e. a labor surplus causes price to fall.
Active macroeconomic policy would move to close an expansionary gap by decreasing aggregate demand
a. True b. False Indicate whether the statement is true or false
Explain the difference between comparative advantage and absolute advantage and which concept should be used to make trade decisions.
What will be an ideal response?