In a decreasing-cost industry, an increase in industry output will
A. lead to a lower market price.
B. shift each firm's average fixed cost curve up.
C. shift each firm's short run supply curve up.
D. lead to a higher market price.
Answer: A
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Between 1850 and 1950 the productivity of the average American farm worker
A. declined. B. remained about the same. C. doubled. D. quadrupled.
If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.
To "cure" their balance of payments deficits without altering exchange rates, Southeast Asian countries in 1997 were forced to create
a. more inflation. b. recessions. c. faster economic growth. d. money at an accelerated rate.
Which of the following would not tend to lower the price of VCRs?
a. decreasing price of DVD players b. increasing price of video cassettes c. improvement in VCR production technology d. reduced price of raw materials used in making VCRs e. increasing price of pay-per-view movies on cable TV