Describe some of the gains from lowering trade barriers that may be difficult to measure
What will be an ideal response?
Cost savings from scale economies and intensified competition, product differentiation, spreading risks, gaining new knowledge, etc.
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A profit-seeking firm will choose the combination of inputs that:
A. maximizes profit. B. maximizes costs. C. has the lowest average variable cost. D. has the lowest average total cost.
At the national level, a Board of____________ runs the Federal Reserve.
a. Representatives b. Presidents c. Governors d. Banks
Refer to the graph shown of average costs for a typical firm. The per-unit cost of the industry would be $8 if:
A. one firm produced 500 units of output. B. two firms produced 1,000 units of output each. C. one firm produced 667 units of output. D. two firms produced 250 units of output each.
Which of the following is a consequence of rent controls established to keep housing affordable for the poor?
A. The quality of rental housing improves as landlords seek to attract the best tenants. B. Less rental housing is available than if the rent controls were not in place. C. Landlords are incentivized to produce and offer more rental units to maintain profits. D. All of these are consequences of rent controls.