When ________ scale of production leads to ________ average costs, an industry exhibits decreasing returns to scale.
A. increased; unchanging
B. increased; higher
C. increased; lower
D. decreased; higher
Answer: B
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If people value clean air over dirty air, and if the air in city A is cleaner than the air in city B (by a wide margin), then we would expect that ____________________, all else equal between the two cities
A) comparable houses in the two cities will sell for the same price. B) comparable house in A will be more expensive than comparable house in B. C) comparable house in B will be more expensive than comparable house in A. D) There is not enough information to answer the question.
Supply-side economists favor tax incentives that
A. Reduce the level of investment. B. Encourage saving. C. Increase the risk incurred by entrepreneurs. D. Discourage infrastructure development.
Which of the following is not correct about the money kept in transactions accounts?
A. It is backed by gold held by the government. B. It is part of the basic money supply. C. It permits direct payment to a third party. D. It is a good substitute for cash in many cases.
When a recession ends, the turning point that immediately follows is called a
A) trough. B) peak. C) depression. D) None of the above answers is correct.