When there are external economies of scale in an industry
A) firm costs decrease as individual firms expand output.
B) firm costs decrease as the industry expands in size.
C) firms will generally increase their size.
D) firms must be located in different regions.
B
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An indifference curve is a line showing
a. combinations of goods that can be produced if all resources are fully employed. b. all combinations of two commodities that are equally desirable to the consumer. c. all combinations of goods over which the consumer has no choice. d. how decisions are made in a nonmarket economy.
Which of the following is the correct way to show the effects of a newly imposed import quota?
a. shift the demand for loanable funds left, the supply of dollars in the market for foreign- currency exchange left, and the demand for dollars in the market for foreign-currency exchange right b. shift the demand for loanable funds left, the supply of dollars in the market for foreign- currency exchange right, and the demand for dollars in the market for foreign-currency exchange left c. shift the demand for dollars in the market for foreign-currency exchange to the right d. shift the supply of dollars in the market for foreign-currency exchange to the left
Economists consider the economy to be at "full employment" when there is no cyclical unemployment.
Answer the following statement true (T) or false (F)
A perfectly competitive industry's market price is found by
A. finding the point on the market demand curve where the largest number of units will be purchased. B. identifying the price at which each firm realizes its largest economic profit. C. the horizontal summation of all the industry firms' individual supply curves. D. locating the intersection of the market demand and market supply curves.