Select True/False for the following questions.
1. A country's per capita real income is equal to the product of a nation's population multiplied by the country's aggregate, inflation-adjusted income.
2. A firm experiences economies of scale along the downward-sloping portion of its long-run average cost curve.
3. A free-rider problem arises when individuals presume that others will pay for public goods so that, individually, they can escape from paying for their portion without reducing the production of the public good.
4. Economists measure economic growth as the percentage change in a nation's per capita real income.
5. In a monopolistically competitive industry, firms can earn economic profits in the short run that leads to industry exit and zero long-run economic profits.
6. Moral hazard refers to the likelihood that firms selling particularly poor-quality products are the ones that have the greatest incentive to misrepresent their attributes to sell them.
7. The geographic-based rationale for international trade is that firms seeking to take advantage of external economies and agglomeration naturally exchange products across borders, thereby generating international trade.
Select True/False for the following questions.
1. A country's per capita real income is equal to the product of a nation's population multiplied by the country's aggregate, inflation-adjusted income.
2. A firm experiences economies of scale along the downward-sloping portion of its long-run average cost curve.
3. A free-rider problem arises when individuals presume that others will pay for public goods so that, individually, they can escape from paying for their portion without reducing the production of the public good.
4. Economists measure economic growth as the percentage change in a nation's per capita real income.
5. In a monopolistically competitive industry, firms can earn economic profits in the short run that leads to industry exit and zero long-run economic profits.
6. Moral hazard refers to the likelihood that firms selling particularly poor-quality products are the ones that have the greatest incentive to misrepresent their attributes to sell them.
7. The geographic-based rationale for international trade is that firms seeking to take advantage of external economies and agglomeration naturally exchange products across borders, thereby generating international trade.
