If all resources used in the production of a product are increased by 20% and total output increases by 20%, then the firm must be experiencing
A. diseconomies of scale.
B. economies of scale.
C. increasing average total costs.
D. constant returns to scale.
Answer: D
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Explain which of the following government policies would tend to make more sense in terms of consumer protection: The licensure of interior designers or the licensure of pharmacists
What will be an ideal response?
On a part of the demand curve where the price elasticity of demand is less than 1, a decrease in price:
a. is impossible. b. will increase total revenue. c. will decrease total revenue. d. raises the price elasticity of demand. e. decreases quantity demanded.
Which of the following is foreign portfolio investment sometimes called?
A. Hot investment B. Quick sale C. Hot money D. Wasteful investment
In some countries, medical care is provided free-of-charge to citizens and is paid for by the government. In those countries, medical care:
A. is available at zero opportunity cost. B. does not exhibit diminishing marginal returns. C. is rationed by some non-monetary method. D. is not a scarce resource.