In a constant cost industry, the cost curves of individual firms will shift upward as the industry ...

In a constant cost industry, the cost curves of individual firms will shift upward as the industry output expands.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

The markets for renewable and nonrenewable resources operate to ensure that:
 a. the producers using these resources earn above-normal profits even in the long run.
  b. the current and future prices of such resources remain high.
  c. the cost of extraction of such resources increases with an increase in price.
  d. the current price of such resources should remain low but the future prices should increase to increase profitability of the producers.
  e. the current and future wants for these resources are satisfied in the least costly manner.

QUESTION 3

An exchange will take place between two parties as long as:
 a. the seller benefits from it.
  b. the buyer benefits from it.
  c. any one of the parties benefit from it.
  d. both the parties benefit from it.

QUESTION 4

Short run refers to a period of time during which:
 a. all the factors are constant.
  b. all the factors are variable.
  c. the producer can shift from one plant size to another.
  d. some factors are fixed while some others are variable.
  e. the producer cannot change the level of output.

QUESTION 5

As an industry's output increases, the industry's demand for the inputs that it uses will also increase.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

In the market for hardwood, everything else held constant, if the rate of interest increases:
 a. the price of the hardwood will fall today.
  b. the lumberjacks will harvest fewer trees today.
  c. prices of boats and furniture will increase in the present period.
  d. the lumberjacks will harvest all the trees leaving nothing for the future.
  e. the price of the hardwood will fall in the future.

QUESTION 7

When a hierarchy is in place where one person can give orders which others must follow, the price of the specific task the subordinates are being asked to perform goes undetermined.
  Indicate whether the statement is true or false