Even if production of a good is characterized by economies of scale, consumers of the good would be best served by having a large number of small firms produce the good because of the effects of increased competition
Indicate whether the statement is true or false
FALSE
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In the aggregate expenditures model of the economy, a downward shift in aggregate expenditures can be caused by a decrease in
A. saving or an increase in government spending. B. taxes or an increase in government spending. C. interest rates or a decrease in taxes. D. government spending or an increase in taxes.
A call option has a strike price of $80. If the underlying stock is selling for $83 on the expiration date, the intrinsic value of the call option is __________ per share
A) $163 B) $83 C) $3 D) $0
Transfer payments are:
a) excluded when calculating GDP because they only reflect inflation. b) excluded when calculating GDP because they do not reflect current production. c) included when calculating GDP because they are a category of investment spending. d) included when calculating GDP because they increase the spending of recipients.
Refer to the provided graph. At which point does marginal product (MP) equal average product (AP) at a specific level of output?
A) point B B) point D C) point A D) point C