Diseconomies of scale are illustrated graphically by an upward shift of the firm's long-run average cost curve
Indicate whether the statement is true or false
FALSE
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Normative economics is
a. an event is explained according to the laws of economics. b. an explanation of the way things ought to be, the explanation involves a value judgement on the part of someone. c. the study of foreign countries. d. the study of our banking system.
The government could offer a subsidy to offset a:
A. negative externality. B. positive externality. C. network externality. D. A subsidy could offset any of these.
If purchasing-power parity holds, when a country's central bank decreases the money supply, its
a. price level rises and its currency appreciates relative to other currencies in the world. b. price level falls and its currency appreciates relative to other currencies in the world. c. price level rises and its currency depreciates relative to other currencies in the world. d. price level falls and its currency depreciates relative to other currencies in the world.
Answer the following questions true (T) or false (F)
1. Hyperinflations occur because governments want to spend more than they raise in taxes, and they pay for the extra purchases by printing money or selling large quantities of government bonds to the central bank. 2. In the United States, businesses are not required to accept cash as payment for goods or services. 3. The quantity equation becomes the basis for a theory when we assume that velocity of money is constant.