The minimum efficient scale is
A) the plant size that yields the most profit.
B) the smallest output level where the firm finally reaches productive efficiency.
C) the level of operation where long-run average costs are lowest.
D) the level of output where diminishing returns have not set in yet.
C
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The existence of money in an economy promotes efficiency by
A) facilitating trade, thereby allowing for greater specialization. B) allowing for the formation of corporations as legal entities. C) creating incentives to be self-sufficient. D) creating an equal distribution of income.
When the price of a normal good decreases, the ________ can be divided between the ________, which keeps the best affordable point on the same indifference curve and the ________, which moves the best affordable point farther away from the origin
A) substitution effect; price effect; income effect B) price effect; income effect; substitution effect C) income effect; substitution effect; price effect D) price effect; substitution effect; income effect
An increase in supply, other things being equal, will cause which of the following to occur?
A. quantity supplied to decrease. B. a leftward shift in the demand curves as the price increases. C. quantity demanded to increase. D. a rightward shift in the demand curve as the price falls.
Related to the Economics in Practice on page 4: According to the Economics in Practice, in terms of wages and job availability, those students graduating during a recession with a degree in economics are ________ those graduating with a degree in sociology.
A. affected equally to B. better off than C. worse off than D. There seems to be no correlation between a student's major and wages or employment during a recession.