The Index of Relative U

question 13

Multiple Choice

The index of relative U.S.export prices fell during the first few years of the 21ˢᵗ century.The primary cause of this was

• A) the growing U.S. trade deficit
• B) the rising price of commodities, such as oil
• C) the persistent appreciation of the U.S. dollar
• D) the introduction of the Euro as a major world currency

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Definitions:

Short-Run Cost Curves

Graphical representations that show the relationship between a firm's costs and output levels in the short term.

Long-Run Curve

The graphical representation in economics of the relationship between output and input when all inputs are variable, showing potential economies of scale.

Marginal-Cost Curve

A graph that displays the cost of producing one additional unit of a good or service.

Average-Total-Cost Curve

A graph that displays the mean total cost of manufacturing across various output quantities, generally characterized by a U-shape because of the effects of economies and diseconomies of scale.