Suppose Heidi's Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be
A. upward sloping to the right.
B. horizontal.
C. downward sloping to the right.
D. U-shaped.
Answer: D
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The U.S. exchange rate rises. As a result, there is a
A) movement along the U.S. aggregate demand curve but the curve does not shift. B) rightward shift in the U.S. aggregate demand curve. C) leftward shift in the U.S. aggregate demand curve. D) rightward shift in the long-run U.S. aggregate supply curve.
When a tax is placed on sellers:
A. sellers always bear a higher incidence than buyers. B. buyers always bear a higher incidence than sellers. C. the effect on the price buyers pay and sellers receive is the same as a tax on buyers. D. None of these is true.
Risk in finance means that an asset
A. Does not pay dividends B. Does not pay capital gains C. Has a present value that is negative D. Has future payments that are uncertain
An increase in income causes compensated demand curves to shift inward and regular demand curves to shift outward.
Answer the following statement true (T) or false (F)