The decreasing portion of a firm's long run average cost curve is attributable to:
a. diminishing returns to scale.
b. increasing marginal cost.
c. economies of scale.
d. diseconomies of scale.
e. constant returns to scale.
c
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Members of the European Union (EU), rely heavily on this form of indirect taxes
a. Value-added tax b. Excise tax c. Property tax d. Sales tax
The adding up of individual economic variables to obtain economy wide totals is called:
A. monetary policy. B. aggregation. C. normative analysis. D. average labor productivity.
The Standard & Poor's 500 Index:
A. actually includes more than 500 of the largest corporations in the U.S. B. gives more weight to large companies than small companies. C. assigns equal weight to all the prices of all the stocks in the index. D. is a price-weighted index.
Which of the following is an advantage of carrying out economic transactions through firms?
A. The number of transactions carried out by a firm is more than that carried out in a market, thereby reducing the contracting cost. B. The number of transactions carried out by a firm is fewer than that carried out in a market, thereby reducing the contracting cost. C. Transactions made by or with a firm involve no opportunity cost. D. Firms lack knowledge about the products they produce and distribute in a market.