Long-run economies of scale exist over the range of output for which the long-run average cost curve:
a. is constant.
b. is falling.
c. is rising.
d. does not exist.
b
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The desirability of an export orientation for development rests on the claim that export industries
a. make better use of domestic resources than do import-substitute industries b. attract foreign investors c. use factors of production that are abundant domestically d. earn more foreign exchange than would be saved by substituting for imports e. all of the above
Extraneous events that are completely unrelated to economic fundamentals are called
A) moonbeams. B) black holes. C) sunspots. D) time warps.
The short run is a period of time
a. equal to or less than six months b. during which all resources may be varied c. during which all resources are fixed d. during which at least one resource is fixed e. during which at least one resource may be varied
?Exhibit 10A-1 Aggregate demand and supply model
As shown in Exhibit 10A-1 and assuming the aggregate demand curve shifts from AD1and AD2, the full-employment level of real GDP is:
A. ?$12 billion. B. ?$8 billion. C. ?$150 billion. D. ?unable to be determined.