Which of the following statements explains increasing returns to scale?
a. A larger firm can produce at a higher average total cost than a smaller firm.
b. A larger firm can produce at a lower average total cost than a smaller firm
c. A larger corporation has lower opportunity costs than a smaller corporation.
d. The cost of production for each unit of good in a small firm always increases as output increases.
b
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_________ are statements that ascribe blame or judge others. They can lead to arguments
a. I-messages b. You-messages c. Theymessages d. Expert messages
Which of the following macroeconomic variables would likely be affected by a fiscal policy?
a. The nominal interest rate b. The exchange rate c. The discount rate d. Employment e. Money supply
When a government program is justified not on its merits but on the number of jobs it will create,
a. the program is an efficient use of taxpayer dollars. b. it should be approved only if the unemployment rate is low. c. taxes should be raised to fund the program. d. it is known as the "broken window fallacy.".
Refer to the information provided in Figure 3.7 below to answer the following question(s).
?Figure 3.7Refer to Figure 3.7. Assume the market is initially at Point B and that pizza is a normal good. A decrease in income would cause the market to move from Point B on demand curve D2 to
A. demand curve D1. B. demand curve D3. C. Point A on demand curve D2. D. Point C on demand curve D2.