In the long-run perfectly competitive equilibrium, firms produce at the minimum of average total cost.
Answer the following statement true (T) or false (F)
True
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Economists Eichengreen and Hausmann coined the phrase original sin to describe developing countries inability to borrow in their own currencies. Where do they believe that this inability comes from? What are other beliefs on this topic?
What will be an ideal response?
Which of the following is true of a tariff?
a. It is a tax levied by the government on domestic production of goods and services. b. It is a quantitative restriction on imports imposed by the government. c. It is a monetary benefit received by exporters from the government. d. It is a monetary benefit received by importers from the government. e. It is a tax on import and export levied by the government.
Susie wins $2 million in her state's lottery. If Susie keeps working after she wins the money, we can infer that the income effect is larger than the substitution effect for her
a. True b. False Indicate whether the statement is true or false
Although monopolistically competitive markets offer consumers a wide variety of differentiated products, there may still be insufficient variety if
a. there are large fixed costs in the market.
b. there are no barriers to entry in the market.
c. the business-stealing externality is present in the market.
d. the government does not impose regulations on the market.