In Figure 21.4, the long-run average total cost curve is given by the curved line segment
A. ABFDGE.
B. ACE.
C. BFD.
D. ABF only.
Answer: A
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Which of the following is NOT an effect from a change in the federal funds rate?
A) change in the real interest rate B) change in investment C) change in government expenditures D) change in aggregate demand E) change in the quantity of money
If the residents of a country receive income from their foreign investments, it is counted as a
A) credit in the current account. B) debit in the current account. C) credit in the capital account. D) debit in the capital account. E) debit in either the capital or current account, depending on the type of investment income.
An increase in the required reserve ratio will lead to a/an:
a. increase in the monetary base. b. increase in the money multiplier. c. increase in the money supply. d. both b and c. e. both a and c.
Normative economics answers the question, "What ought to be?" Positive economics predicts the consequences of alternative actions, answering the questions, "What is?" or "What will be?"
Answer the following statement true (T) or false (F)