Average costs _______initially due to the presence of fixed costs and then rise due to _________
a. fall; decreasing marginal costs
b. fall ; increasing marginal costs
c. rise; decreasing fixed costs
d. rise; increasing fixed costs
b
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________ unemployment arises from a mismatch of skills and jobs
A) Cyclical B) Frictional C) Structural D) Inflationary
If the U.S. experiences a current account deficit, then
A. the U.S. must also be running a capital account deficit. B. the U.S. must be running a capital account surplus. C. the U.S. may either experience a capital account surplus or deficit. D. None of these statements are true.
People in poor countries may have difficulties achieving economic growth because:
a. their production possibilities curves slope upward instead of downward. b. they must cut back on current consumption to increase capital goods. c. they have a solid consumption base already in place. d. their resource bases are fully developed. e. the law of increasing costs makes it hard to produce more goods.
With a consumption function of the form C = a + bYD, which of the following would best measure how much a recession will spread?
A. 1 ÷ (1 - b). B. Parameter a. C. Parameter b. D. Variable YD.