Making a loan is generally:
A. less risky and less potentially rewarding than buying stock.
B. less risky and more potentially rewarding than buying stock.
C. more risky and less potentially rewarding than buying stock.
D. more risky and more potentially rewarding than buying stock.
A. less risky and less potentially rewarding than buying stock.
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When a firm's long-run average total cost falls as its output increases, the firm is experiencing
A) economies of scale. B) diseconomies of scale. C) constant returns to scale. D) decreasing marginal returns. E) decreasing cost of marginal returns.
Compare the effectiveness of monetary policy in an open economy with mobile international capital to monetary policy in a closed economy. Why is it different? Use an appropriate diagram to illustrate your answer
State two examples of government-created monopolies
Which of the following is NOT studied in microeconomics?
A) the effect of an increase in gasoline taxes on the purchase of gasoline B) the impact of government spending on the unemployment rate C) the impact of firms' hiring choices on their employees' wages D) the impact of higher fuel prices on the cost of airline tickets