(Long run) average cost curves are U-shaped when the production technology has increasing returns to scale and the firm faces recurring fixed costs.
Answer the following statement true (T) or false (F)
False
Rationale: Both the increasing returns to scale and the recurring fixed costs give rise to downward sloping AC curves -- with nothing causing the upward slope in a U-shape.
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Production is productively efficient when
a. the maximum possible output is being produced from a given collection of inputs b. people are working their hardest c. no more capital can be substituted for labor d. technological innovation is no longer desirable e. workers perform their duties at the expected level, even if they are physically capable of doing more
Examples of transfers-in-kind include
A. foreign aid. B. food stamps. C. taxes on alcohol and tobacco. D. tax rebates on both the federal and state levels.
In most defined contribution retirement plans, employees have a choice about whether or not to participate. Which of the following statements about worker participation is true?
A. Current U.S. law says that workers must be automatically enrolled in employer retirement plans. B. Workers are more likely to participate if they are automatically enrolled and are permitted to opt out, rather than not enrolled and permitted to opt in. C. Full-time workers are less likely to participate than part-time workers because part-time workers need the retirement income more. D. Workers are more likely to be part of a defined benefit plan than a defined contribution plan.
In Macroland there is $1,000,000 in currency that can either be held by the public as currency or deposited into banks. Banks' desired reserve/deposit ratio is 10%. If the public of Macroland decides to hold more currency, increasing the proportion they hold from 50% to 75%, the money supply in Macroland will ________.
A. increase. B. either increase or decrease. C. decrease. D. remain the same.