Which of the following statements is correct for the case of a downward-sloping demand curve (beyond the first unit of output)? A) P = AR = MR B) P = AR > MR C) P > AR > MR D) P = AR < MR ANSWER B
Date: September 10th, 2020
For the U.S. economy, the largest expenditure category is: A) government expenditures. B) net export expenditures. C) personal consumption expenditures. D) investment expenditures. ANSWER C
Date: September 10th, 2020
Measuring expenditures and income with the price level allowed to vary, so that changes in these values represent changes in either the actual amount of goods, services, and income or changes in the price level or a combination of both factors is denoted in ________ terms. A) nominal B) real C) constant dollar D) all […]
Date: September 10th, 2020
If an industry is characterized by substantial diseconomies of scale, as a particular firm in the industry expands its production capacity we will observe: A) a decrease in marginal costs. B) an increase in the marginal product of labor. C) a decrease in the total fixed costs of production. D) an increase in the average […]
Date: September 10th, 2020
All else constant, as the barriers to entry into a particular market increase, so will the ability of firms in that market to earn above-average profits. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Potential GDP focuses on the: A) long-run supply side of the economy. B) long-run demand side of the economy. C) short-run supply side of the economy. D) short-run demand side of the economy. ANSWER A
Date: September 10th, 2020
The negatively-sloped part of the long-run average total cost curve is due to which of the following? A) Diseconomies of scale. B) Diminishing returns. C) The difficulties encountered in coordinating the many activities of a large firm. D) The increase in productivity that results from specialization. ANSWER D
Date: September 10th, 2020
In which of the following scenarios would a predatory pricing scheme have the greatest chance of success, all else constant? A) The predatory price is set well below cost, many rivals are likely to enter after the strategy ends, and profits can be recouped only over a relatively long period of time. B) The predatory […]
Date: September 10th, 2020
At the point on the demand curve at which marginal revenue = 0, the absolute value of the coefficient of the price elasticity of demand is: A) > 1. B) = 1. C) < 1. D) = 0. ANSWER B
Date: September 10th, 2020
Short-run macroeconomic policies concentrate on: A) minimizing fluctuations around potential GDP. B) maximizing fluctuations around potential GDP. C) incentives for increasing productivity and the potential output of the economy. D) none of the above. ANSWER A
Date: September 10th, 2020
