When a firm is on the portion of its long run ATC curve that slopes upward, it is experiencing:
A. economies of scale.
B. diseconomies of scale.
C. constant returns to scale.
D. Any of these is possible.
B. diseconomies of scale.
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The benefits of economic growth are ________, while the costs of economic growth are ________.
A. increased output per person; less future consumption B. increased output per person; too small for concern C. more current consumption; less future consumption D. increased output per person; the consumption sacrificed in exchange for capital formation
Which of the following would not be a consequence of an increase in the U.S. government budget deficit?
a. U.S. interest rates rise b. U.S. net capital outflow falls c. the real exchange rate of the U.S. dollar depreciates d. the U.S. supply of loanable funds shifts left
Buddy bought a bond last year for $10,000. His bond pays $1,000 a year. This year a bond that sells for $10,000 pays $900 a year. If Buddy were to sell his (old) bond, its price would be approximately
A) $11,111. B) $10,120. C) $9,000. D) $12,000. E) $9,500.
With a home monopolist, the imposition of a tariff results in:
a. a higher deadweight loss than a quota. b. a higher price for consumers than a quota. c. a lower deadweight loss than a quota. d. the same welfare effects as a quota.