When a firm is experiencing economies of scale, the minimum point of the firm’s short-run average total cost curve shifts down as it expands its scale of production. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
When a country’s import spending exceeds export spending, the country is experiencing a: A) trade deficit. B) trade surplus. C) budget deficit. D) none of the above. ANSWER A
Date: September 10th, 2020
Because there is no formal agreement among the participating firms, firms that engage in tacit collusion are exempt from prosecution under the anti-trust laws. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
When a country’s export spending exceeds import spending, the country is experiencing a: A) trade deficit. B) trade surplus. C) budget deficit. D) none of the above. ANSWER B
Date: September 10th, 2020
Although tacit collusion can enhance the price-setting power of the participating firms, it can also result in greater efficiency in production, which also benefits society. Thus, it is not immediately clear, a priori, when tacit collusion actually hurts or helps consumers. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Well-functioning financial markets promote A) inflation. B) deflation. C) unemployment. D) growth. ANSWER D
Date: September 10th, 2020
Decrease in stock market wealth will ________ the expenditure curve: A) decrease. B) increase. C) not change. D) none of the above. ANSWER A
Date: September 10th, 2020
We would expect the cross price elasticity of demand between digital cameras and film cameras to be positive. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
While the demand for beer is relatively price inelastic, the price elasticity of demand for a particular brand is relatively high, due in large part to availability of close substitutes. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Decreases in autonomous spending have a contractionary effect and make ________ levels of real income consistent with a given interest rate. A) lower B) higher C) constant D) none of the above. ANSWER A
Date: September 10th, 2020
