Economies of scale exist when
A. marginal cost decreases as output increases.
B. fixed cost decreases as output increases.
C. total cost decreases as output increases.
D. long-run average cost decreases as output increases.
Answer: D
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Vertical equity refers to the notion that equally situated individuals should be taxed equally.
Answer the following statement true (T) or false (F)
According to the misperceptions theory, when the price level falls below the expected price level
A) the economy's SRAS curve shifts up. B) the economy moves along its AD curve. C) the economy moves along its LRAS curve. D) the economy moves along its SRAS curve.
The index that the U.S. government currently uses to determine whether a merger should be allowed is the
a. Herfindahl index b. Schumpeter index c. Dow Jones average index d. consumer price index e. four-firm concentration ratio
Governments in developing countries typically play a larger role in investment spending in their economies than do the governments of industrial countries
a. True b. False Indicate whether the statement is true or false