When you produce cars, it is enormously expensive to produce one car, but ultimately the costs per car decrease as more are produced. This would be an example of:
A. decreasing marginal opportunity costs.
B. constant marginal opportunity costs.
C. increasing returns to scale.
D. increasing marginal opportunity costs.
Answer: A
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Refer to Figure 5-9. The private profit-maximizing output level is
A) Q1. B) Q2. C) Q3. D) Q4.
Increased international trade and deregulation have resulted in
a. increased competition in the U.S. economy b. greater monopolization of industries in the U.S. economy c. more oligopolies and cartels in the U.S. economy d. greater government intervention in the U.S. economy e. no changes in the U.S. economy
Which of the following is the objective of expansionary monetary policy?
a. An increase in employment. b. A decrease in employment. c. An increase in the velocity of money. d. An increase in prices proportional to the rise in the money supply.
Assume that this graph illustrates a perfectly competitive labor market.
If the supply of person-hours in this market shifts to the right, then the equilibrium wage will ________ and the equilibrium number of person-hours will ________.
A. fall; decrease B. increase; increase C. fall; increase D. stay the same; increase