A. Short run marginal cost rises, output rises
B. long run marginal cost rises, output rises
C. Short run average cost rises, output rises
D. long run average cost rises, output rises
Related Mcqs:
- Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land Note that wages are the returns to labor and rents are the returns to land According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B: A. wages and rents should fall in Country A B. wages and rents should rise in Country A C. wages should rise and rents should fall in Country A D. wages should fall and rents should raise in Country A ?
XA. wages and rents should fall in Country A
B. wages and rents should rise in Country A
C. wages should rise and rents should fall in Country A
D. wages should fall and rents should raise in Country A - If a production function exhibits constant returns to scale ?
A. doubling all of the inputs more than doubles output due to the catch-up effect
B. doubling all of the inputs has absolutely no impact on output because output is constant
C. doubling all of the inputs less than doubles output due to diminishing returns
D. doubling all of the input’s doubles output - When the decrease in the price of one good causes the demand for another good to decrease, the goods are_________?
A. complements
B. substitutes
C. inferior
D. nromal - Assume there is no government or foreign setor, If the MPC is 75 a Rs20 million decrease in planned investment will cause aggregate output to decrease by ?
A. Rs80 million
B. Rs20 million
C. Rs 15 million
D. Rs26.67 million - Polish economist Oskar Lange’s model of decentralized ______ combined the advantages of market allocation with more uniform income distribution by dividing the returns from social ownership of nonhuman productive resources among the whole population ?
A. market socialism
B. capitalism
C. mixed economy
D. monopoly - If the diagram of a line shows that lower values on the vertical scale are associated with higher values on the horizontal scale this is an example of ?
A. a nonlinear relationship
B. a positive linear relationship
C. a scatter diagrams
D. a negative linear relationship - Suppose Handel’s Ice Cream experiences economies of scale up to a certain point and diseconomies of scale beyond that point. Its long-run average cost curve is most likely to be ?
A. downward sloping to the right
B. U-shaped
C. Horizontal
D. upward sloping to the right - Economic growth may depend upon _____ and _____?
A. Population size, x-efficiency
B. Population age distribution, education
C. Population growth technical progress
D. Population growth education - Takatoshi Ito (1992) contends that parliamentary governments manipulate the timing of _____ while presidential governments manipulate the timing of _____?
A. monetary policy, fiscal policy
B. elections; economics policies
C. economic policies; political policies
D. tax collection, tax implementation - The Phillips curve shows the trade-off between _____ and _____?
A. the inflation rate, interest rates
B. the inflation rate, the unemployment rate
C. interest rates, output
D. output, employment
