Average fixed costs of production
A) remain constant.
B) will rise at a fixed rate as more is produced.
C) graph as a U-shaped curve.
D) fall as long as output is increased.
Answer: D
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Leontief's results were considered paradoxical because the United States was believed to be
A) technologically efficient relative to the rest of the world. B) capital abundant relative to the rest of the world. C) labor abundant relative to the rest of the world. D) All of the above.
Suppose there are two industries, A and B. Suppose that mergers are proposed in both industries, and the Herfindahl-Hirschman Index would increase by 500 in each one. If antitrust officials allow the mergers in industry A but challenge the mergers in industry B, the most likely explanation is that
a. there are political motivations to antitrust enforcement b. industry A was already less competitive than industry B c. industry A had a balanced oligopoly and industry B did not d. industry A started as a more competitive industry than B e. antitrust authorities made a random decision
Higher prices for natural resources are
a. a natural and inevitable result of resource depletion. b. not possible for more than a short time, as technological advances clearly guarantee falling resource prices. c. not the story of the last two centuries, because resource prices have declined through most of this period. d. the major cause of resource shortages in the world.
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the short run would be:
A. P4 and Y2. B. P4 and Y1. C. P1 and Y1. D. P3 and Y1.