The long-run average cost curve is typically:
A. upward-sloping at first but then downward-sloping.
B. downward-sloping at first but then upward-sloping.
C. always downward-sloping.
D. always upward-sloping.
Answer: B
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State whether each of the following goods and services is nonrival, nonexcludable or both:
a. A toll road b. A public park c. A lighthouse d. An art museum e. A radio broadcast of "A Prairie Home Companion"
Suppose that the consumer price index in Eastlandia rises from 150 to 159 over the past year, and that the city sets its car registration prices so that real prices stay the same. If the cost to register a car was $50 last year, how much would it cost this year, in nominal terms?
a) $50 b) $53 c) $56 d) $59
The one quirk that labor markets have, which helps explain why unemployment goes up so much in a recession is that:
A. A price floor called a "minimum wage law" exists for the labor market B. Wages are flexible upward but "sticky" downward C. Firms are "demanders" of labor, rather than suppliers D. Machines could "replace" humans in the labor market
A depreciation in the value of the U.S. dollar would:
A. encourage foreigners to travel on American owned airlines. B. make U.S. goods more expensive to foreign consumers. C. decrease the number of dollars it takes to buy a Swiss franc. D. make it more expensive for U.S. citizens to travel abroad.