If a manufacturer has a U-shaped long-run average total cost curve, then
a. it cannot correctly calculate the position of its fixed cost curve
b. there is an output level such that producing one more unit increases average total cost
c. there must be a large range of production over which the firm experiences constant returns to scale
d. no two quantities of output can have the same average total cost
e. there does not exist an output level such that producing one more unit decreases average total cost
B
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What is the rationale behind a marketable emission allowance scheme?
A) to discipline polluting firms by specifying the maximum amount of emissions allowed and giving them permits to pollute up to their allowance B) to provide firms with the incentive to consider less costly alternatives to pollution reduction by making firms pay for the right to pollute beyond their specified allowance C) to raise revenue for the government through the sale of emission permits and at the same time set an emissions target D) to create a market for externalities: the scheme brings together buyers and sellers of marketable permits
The Fed's power to set the required reserves of commercial banks:
a. provides a certain source of interest income for commercial banks. b. allows the Fed to control the lending ability of commercial banks and, thereby, control the money supply. c. prevents banks from hoarding too much vault cash. d. prevents commercial banks from earning excess profits.
As more economic development occurs
A. technological progress slows. B. capital accumulation decreases. C. the population growth rate increases. D. the population growth rate decreases.
A system in which money is issued by the government and its value is based uniquely on the public's faith that the currency represents command over goods and services is the
A. transactions approach. B. fiduciary monetary system. C. gold standard. D. barter system.