All inputs are increased by the same proportion and the output increases more than proportionately, this suggests that:
(a) Constant returns to scale are present.
(b) Increasing returns to scale are present.
(c) Decreasing Returns to Scale.
(d) None of the above.
Answer: (b) Increasing returns to scale are present.
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Which of the following statements is true of minimum wages?
A) Minimum wages are sometimes referred to as wage ceilings. B) No state in the U.S. economy has ever enforced a minimum wage. C) Minimum wages are normally set above the labor market clearing wage rate. D) Minimum wages benefit firms and producers.
As the number of firms in a Cournot oligopoly ________, the equilibrium quantity gets closer to the ________ equilibrium quantity.
A) decreases; perfectly competitive B) increases; monopoly C) increases; perfectly competitive D) decreases; monopolistically competitive
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A. fails to meet one of B. fails to meet two of C. fails to meet all of D. meets all of
If an increase in income leads to a decrease in the demand for ground beef, then ground beef is a(n):
A. complementary good. B. substitute good. C. inferior good. D. normal good.