Determining whether a good is a merit good is:
A. best done using economic theory.
B. an objective exercise.
C. a subjective exercise.
D. best left to economists.
Answer: C
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If price is less than its minimum average variable cost, a perfectly competitive firm that continues to produce in the short run
a. cannot cover any of its variable cost b. incurs a loss greater than its fixed cost c. can cover all of its fixed cost and some of its variable cost d. can cover all of its variable cost and some of its fixed cost e. can cover both its fixed costs and its variable cost
The IMF comprises of 50 member countries including all developed countries, and a few countries of Asia and Latin America
a. True b. False Indicate whether the statement is true or false
Government intervention in agricultural markets was
a. ruled unconstitutional by the Supreme Court in 1936 b. initially introduced to promote agricultural exports and to curb agricultural imports from other countries, especially from Spain c. initially designed to help consumers by legislating farm prices below their equilibrium levels d. started in 1933 e. initially designed to promote productivity and to decrease the number of farms in the economy
Public saving is T - G, while private saving is Y - T - C
a. True b. False Indicate whether the statement is true or false