If a nation's production possibilities curve is a straight line
a. the law of increasing costs does not apply
b. the law of increasing costs applies
c. there are no gains from trading with other nations
d. the gains from trading with other nations are captured by the other nations
e. the gains from trading with other nations are captured by the nation
A
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Assume the equilibrium price level is 140 and the equilibrium real GDP is $15 trillion. What happens if the current price level equals 125?
What will be an ideal response?
The maximum value that the Herfindahl-Hirschman Index can attain is
A) 1. B) 10. C) 100. D) 10,000.
Total variable costs: a. Increase when quantity produced increases
b. Decrease when quantity produced increases. c. Sometime increase and sometime decrease when quantity produced increases. d. Can sometimes be constant over a substantial range of output.
If the firm's fixed costs double while variable costs are unchanged, then
a. marginal cost more than doubles. b. marginal cost doubles. c. marginal cost remains unchanged. d. average total cost remains unchanged. e. average variable cost doubles.