Which of the following explains the shape of an average total cost (ATC) curve?
a. Average fixed cost drives up ATC at very high levels of output.
b. ATC is high at both very small and very large levels of output.
c. ATC curves are U-shaped because variable input costs fluctuate.
d. ATC is low at low output and high at high output.
b. ATC is high at both very small and very large levels of output.
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The 1910–1914 period was chosen as a benchmark period for determining parity prices because that was when
a. there was the greatest number of farms b. corn prices were the highest c. farmers believed that farm and nonfarm prices were such that farms goods tradedequal value for equal value with nonfarm goods d. the exchange standard was most biased in favor of farmers e. farm productivity was the lowest
Tariffs on non-agricultural goods are much higher in India than in China
Indicate whether the statement is true or false
The own-price elasticity for cherries at the farm level is —0.60. Because of the recent freeze in Washington, cherry production will fall by 12 percent. Cherry prices are likely to
A) Remain the same. B) Rise by 20%. C) Fall by 20%. D) Can't tell; insufficient information.
Ignoring the government and foreign sectors, there is an unplanned decrease in inventories of $80 billion at the current level of real Gross Domestic Product (GDP) of $15 trillion. From this information, we know that
A. consumption expenditures equal $15 trillion less saving less $80 billion. B. saving equals $80 billion. C. planned investment is $80 billion more than planned saving. D. planned investment is $80 billion less than planned saving.