When a firm does more of something, it gets better at it. This learning-by-doing is:
A. called the principle of natural progression.
B. a source of diseconomies of scale.
C. a source of economies of scale.
D. called "spreading the overhead."
Answer: C
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When the federal government uses taxation and purchasing actions to stimulate the economy it is conducting
A. monetary policy. B. fiscal policy. C. employment policy. D. incomes policy.
When the Fed raises the federal funds rate, the exchange rate ________ and net exports ________
A) increases; decreases B) does not change; decreases C) does not change; does not change D) decreases; decreases E) increases; increases
The figure above shows the demand curve, marginal revenue curve, and marginal cost curve. The deadweight loss when the market has a monopoly producer is
A) ace. B) abf. C) bcd. D) bcef. E) acd.
Refer to Figure 2-13. What is the opportunity cost of producing 1 ton of pineapples in Guatemala?
A) 1/2 of a ton of coconuts B) 1 1/3 tons of coconuts C) 2 tons of coconuts D) 180 tons of coconuts