The Long-run average total cost:
A. will rise if there are economies of scale
B. assumes all inputs are variable
C. will fall under the assumption of diseconomies of scale
D. will be a flat line if there are economies of scale
Answer is A. will rise if there are economies of scale
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Which of the following statements is true?
A) An overvalued domestic currency encourages exports. B) A country can keep its currency overvalued against the dollar as long as its dollar reserves last. C) A country can keep its currency overvalued against the dollar as long as it can print its own currency. D) An undervalued domestic currency encourages imports.
The development of new technology reduces the cost of producing calculators. In addition, assume that consumers have cut back on their scheduled purchases in anticipation of further cost-saving developments. As a result, we can expect
A. a decrease in price but no predictable change in output. B. a decrease in output but no predictable change in price. C. an increase in output but no predictable change in price. D. a predictable decrease in both output and price.
Refer to the figure below:
Let demand remain constant at D; an increase in wages causes firms to be willing and able to sell 150 fewer units at each price than they were before the wage increase.
A. The new equilibrium price and quantity will be P = $6 and Q = 400. B. The new equilibrium price and quantity will be P = $8 and Q = 300. C. The new equilibrium price and quantity will be P = $6 and Q = 150. D. The new equilibrium price and quantity will be P = $7 and Q = 250.
You turn to the bond market page of a newspaper and look under the column headed "Close" and see that it says, "49 1/2" this indicates that
A. the closing price for the bond on this particular day is $495. B. the closing price for the bond on this particular day is $49.50. C. the closing price for the bond was $49.50 higher than on the previous trading day. D. the bond will mature on June 30, 2049.