If the firms in a market have constant returns to scale internally while there are external economies of scale for the industry, a firm's long-run supply curve will be ________ and the long-run market supply curve will be ________
A) downward sloping; downward sloping
B) upward sloping; horizontal
C) horizontal; downward sloping
D) downward sloping; horizontal
E) upward sloping; downward sloping
C
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Lenders sell bonds and borrowers buy them
a. True b. False Indicate whether the statement is true or false
If Congress passed new laws significantly increasing the regulation of business, this action would tend to:
a. Increase per-unit production costs and shift the aggregate supply curve to the left b. Increase per-unit production costs and shift the aggregate demand curve to the left c. Increase per-unit production costs and shift the aggregate supply curve to the right d. Decrease per-unit production costs and shift the aggregate supply curve to the left
The marginal principle implies that an individual should produce or consume where:
A. marginal benefit exceeds marginal cost. B. marginal benefit is less than marginal cost. C. marginal benefit equals marginal cost. D. total benefit equals total cost.
Which of the following is the best example of a tariff?
A) a subsidy from the U.S. government to domestic manufacturers of residential air conditioners to enable them to compete more effectively with foreign producers B) a limit on the quantity of residential air conditioners that can be imported from a foreign country C) a $150 fee imposed on all imported residential air conditioners D) a tax placed on all residential air conditioners sold in the domestic market to help offset the impact of emissions on the environment