The minimum point of the average total cost curve is called the efficient scale
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 9.2. A movement from point c to point b could be caused by a simultaneous ________ and ________
A) decrease in government spending; decrease in the price of oil B) increase in government spending; increase in the money supply C) increase in taxes; decrease in government spending D) decrease in taxes; increase in the price of oil
A firm chooses its profit-maximizing quantity of capital by
A) examining the total cost of capital equipment. B) comparing the price of capital with the price of labor. C) comparing the marginal revenue product of capital with the rental price of capital. D) determining the rate at which the firm can borrow funds to purchase plant and equipment.
A microeconomic model CANNOT be used to
A) evaluate the impact of a price change on a firm's revenue. B) predict the impact on a rise of the minimum wage on unemployment. C) evaluate the fairness of the proposal to nationalize health insurance. D) evaluate the effect of an increase in stadium size on the price of a sport team's tickets.
If everyone in an economy had equal income, the Lorenz curve would be a curve that intersects the line of income equality at the point at which 50 percent of the population earns 50 percent of the income
a. True b. False Indicate whether the statement is true or false