A production possibilities frontier that is a downward-sloping straight line implies
A) economies of scale.
B) diseconomies of scale.
C) economies of scope.
D) no economies of scope.
D
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If total cost is $1,000 when output is zero, and total cost is $1,200 when output is one, and total cost is $1,500 when output is two, then which of the following is true?
a. Total fixed cost is $1,500. b. The marginal cost of producing the first unit of output is $1,200. c. The marginal cost of producing the second unit of output is $300. d. The average fixed cost is $750 when two units of output are produced.
Which of the following best describes a subsidy?
A. Banks make low-interest loans to farmers B. Farmers pay the government $100 per ton of wheat produced C. The government puts a tax of $100 per ton on wheat imports D. The government pays farmers $100 per ton of wheat produced
Which of the following statements is NOT true for a perfectly competitive firm?
A. The market demand and supply curves determine the market price. B. The firm's demand curve is perfectly elastic. C. The firm can influence its demand curve by advertising its product. D. A firm's demand curve is horizontal.
Determining accurate estimates of the government spending multiplier is difficult because
A) the total amount of debt also impacts the rate of inflation B) separating the impacts of debt versus deficits is difficult C) determining the expectations of households regarding future debt obligations is difficult D) estimating the average interest rate paid on the total amount of debt is difficult