When it is cheaper for one firm to produce a particular product, ____ exist(s).
A. economies of scale
B. economies of scope
C. diminishing marginal returns
D. cross-subsidization
Answer: A
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Fill in the blank(s) with the correct words. Hint: along inside outside
a. Points ________ the production possibilities frontier are possible and efficient. b. Points ________ the production possibilities frontier are possible but not efficient. c. Points ________ the production possibilities frontier are not possible.
The figure above shows the market for milk. If the population increases, then the efficient quantity of milk ________ and the producer surplus ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
The coupon equivalent yield on a six-month Treasury bill that has a $1,000 face value and sells for $960 is
A) 6.5 percent. B) 8.3 percent. C) 9.5 percent. D) 9.8 percent.
An increase in real interest rates will ________ current consumption for households who are lenders and will ________ current consumption for households who are borrowers
A) increase; decrease B) decrease; increase C) have an unclear effect on; decrease D) decrease; have an unclear effect on