A firm has a u shaped lratc curve that has a minimum

This preview shows page 6 - 8 out of 11 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Principles of Economics
The document you are viewing contains questions related to this textbook.
Chapter 33 / Exercise 3
Principles of Economics
Mankiw
Expert Verified
16. A firm has a U-shaped LRATC curve that has a minimum value of $17 at a quantity of 250. Which of the following are true?I. There are Economies of Scale at a quantity of 200II. LRATC is rising at an output of 300.III. The short run average cost of producing 250 units of output is less than $17a) Only I and II are trueb) All three are truec) Only I is trued) Only II is truee) Only III is true
17. Which of the following are true about the way the classical view of monetary policy impacts the quantity equation of money?I. Real GDP is unaffected by the money supplyII. Nominal GDP increases with the money supplyIII. Velocity is unaffected by the money supply.
18. Which of the following represents a reason AD is downward sloping?I. Inflation in the US makes consumers buy more foreign goodsII. Inflation makes producers miss that the increased price of their output is not a real increase in price.III. Inflation decreases the real wealth of consumers.
19. A worker is fired from their job because of downsizing. He decides to stay home and take care of his kids. Which of the following is true?
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Principles of Economics
The document you are viewing contains questions related to this textbook.
Chapter 33 / Exercise 3
Principles of Economics
Mankiw
Expert Verified
Practice Final
20. There is a perfectly competitive market where the equilibrium price is $30 and the equilibrium quantity is 4000. Which of the following is trueI. Under the standard assumptions, a benevolent social planner would choose toproduce more than 4000 of this good.II. At a price of $40 and a quantity of 4000, producer surplus is lower that at the equilibrium.III. A ceiling price of $10 and quantity of 2000 in this market must decrease total surplus but increase consumer surplus.a) None of them are trueb) Only II is truec) Only III is trued) Only I and II are truee) Only I and III are true
SECTION II1. Answer the following questions based on this excerpt from an article in -increase_n_2409153.htmlCollege textbook prices have increased faster than tuition, health care costs and housing prices, all of which have risen faster than inflation. College textbook pricesare 812 percent higher than they were a little more than three decades ago, the American Enterprise Institute, a think tank, reports. Textbook costs have well outpaced the 559 percent increase in tuition and feesover roughly the same period.Roughly one-fifth of a textbook's price goes to the storewhere it is sold to cover personnel and operating costs, while more than three-quarters goes straight to the publisher, according to a recent article from U.S. News & World Report. The magazine broke down textbook publishing costs:

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture