Price and output decisions are two aspects of the same choice
a. True
b. False
Indicate whether the statement is true or false
True
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A country producing a combination of 5 units of guns and 6 units of butter would be _________________ (outside/on/inside) the production possibilities curve
What will be an ideal response?
Bette's Breakfast, a perfectly competitive eatery, sells its "Breakfast Special" (the only item on the menu) for $5.00. The costs of waiters, cooks, power, food etc. average out to $3
95 per meal; the costs of the lease, insurance and other such expenses average out to $1.25 per meal. Bette should A) close her doors immediately. B) continue producing in the short and long run. C) continue producing in the short run, but plan to go out of business in the long run. D) raise her prices above the perfectly competitive level. E) lower her output.
Macroeconomics focuses on:
A.) Government failure. B.) The behavior of individuals, firms, and government agencies. C.) Land, labor, and capital. D.) The economy as a whole.
When external scale economies exist in an industry, new trade opportunities will cause consumers
A. in the exporting country to gain but consumers in the importing country to lose. B. in both the exporting and importing countries to gain. C. in both the importing and exporting countries to lose. D. in the importing country to gain but the consumers in the exporting country to lose.