The term minimum efficient scale refers to:
a. the output corresponding to the minimum point of the short-run average-total-cost curve.
b. the total of all efficient points along the long-run average-cost curve.
c. the output corresponding to the highest point of the short-run average-total-cost curve.
d. the minimum point of the long-run average-cost curve, or the output level at which the cost per unit of output is the lowest.
e. the maximum point of the long-run average-cost curve, or the output level at which the cost per unit of output is the highest.
d
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What do antitrust laws enable the government to do?
a. Break up large firms into smaller ones b. Acquire a controlling percentage of large firms c. Require firms to sell off profitable operations d. Block all mergers and acquisitions by foreign firms
The monetary approach basically looks at as the fundamental variable affecting exchange rates.
a. interest rates; short-run b. interest rates; long-run c. the price level; short-run d. the price level; long-run
If the economy is in a recession, in an effort to move the economy to the long-run equilibrium, the government could:
A. decrease spending to increase aggregate demand. B. decrease spending to decrease aggregate demand. C. increase spending to increase aggregate demand. D. increase spending to decrease aggregate demand.
To an economist, the term "needs"
A) refers only to material desires but not nonmaterial desires. B) is objectively undefinable. C) identifies the purchases of basic goods and services. D) refers to the purchase of goods by the poor.