Which factor could contribute to a firm experiencing economies of scale?
A. The law of diminishing marginal returns
B. Deterioration of information and control within a firm
C. A rising long-run average total cost
D. Productivity gains from more specialized labor
Answer: D
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Political candidates often hold fundraisers by charging "per plate" for dinner. Wendy purchased four tickets to a $1,000 per plate dinner for a local city council candidate. Does this transaction benefit both parties?
A) Yes, but only if the dinners served actually cost $1,000 each. B) Yes, it was a voluntary exchange that benefited both parties. C) No, political candidates should never be allowed to overcharge for a fundraising dinner as that limits the number of people who can afford to attend. D) No, Wendy paid too much for four dinners.
According to the law of increasing opportunity cost,
a. opportunity cost rises as technology improves b. the production possibilities frontier is a straight line c. opportunity cost rises as society produces more of a good or service d. the production possibilities frontier is convex with respect to the origin (that is bowed toward the origin) e. monetary costs rise as opportunity cost rises
When prices in the goods and services market are below the level anticipated,
a. output will temporarily exceed the economy's long-run potential. b. output will temporarily fall short of the economy's long-run potential. c. output will be equal to the economy's long-run potential. d. the actual rate of unemployment will be less than the natural rate of unemployment.
The only way to reduce the national debt is to run budget surpluses.
Answer the following statement true (T) or false (F)