Author Question: A long run supply curve: a. will rise if diminishing returns are encountered. b. will rise if ... (Read 50 times)

EY67 · **on:** Jun 30, 2018

A long run supply curve:
a. will rise if diminishing returns are encountered.
b. will rise if diseconomies of scale are encountered.
c. assumes that all resources are variable.
d. is characterized by both (b) and (c).

Question 2

What is known as the Dutch disease?
a. The problem that arises when a government cannot meet its foreign debts
b. The phenomenon of a boom in one industry causing declines in the rest of the economy
c. A sudden and unexpected devaluation of a currency as a consequence of policy controls
d. The problem that arises when high imports force an economy to borrow from external sources
e. A deficit in the balance of payments of the economy that arises due to a sudden appreciation of the domestic currency