If a company has significant economies of scale in the long run-assuming a large market -the company will tend to
A. grow larger and have a rising average cost curve.
B. become smaller and have a rising average cost curve.
C. become smaller and have a declining average cost curve.
D. grow larger and have a declining average cost curve.
Answer: D
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Upon getting a big promotion, Sally decides to buy a house in the neighborhood she grew up in as a child. In fact, the house she buys used to belong to a neighbor of hers, and so she's certain it's in good shape and well worth the $200,000 she pays for it. The only thing Sally needs to do is replace all the gutters for $1,000, which she happily does. How will GDP be affected by Sally's recent purchases?
A. Consumption will increase by $210,000. B. GDP will increase by $1000. C. Consumption will increase by $1,000, and investment will increase by $200,000. D. Investment will increase by $201,000.
Federal income tax law excludes gain realized on the sale of a primary residence for individuals filing separately and for couples filing jointly. The amount of this exclusion is (separately/jointly):
A) $100,000/$200,000 B) $125,000/$250,000 C) $250,000/$500,000 D) $300,000/$600,000
What is comparative advantage? What is absolute advantage?
What will be an ideal response?
A perfectly competitive firm will shut down rather than produce if its
A) price is less than average variable cost. B) price is less than total variable cost. C) total revenue is less than total cost. D) price is less than marginal cost.