Economies of scale means that
A. the long-run average total cost curve slopes downward over it entire range.
B. the long-run total cost curve slopes downward over it entire range.
C. the four-firm concentration ratio is below 80.
D. the average fixed cost curve slopes downward over its entire range.
Answer: A
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In which of the following cases would the supply of loanable funds curve shift rightward?
A) Investment demand increases. B) The stock market booms, so people's wealth increases. C) In June, Sally learns that at year's end she will receive a bonus that will double her current salary. D) The economy moves into a recession. E) Joe is worried about cutbacks at his firm, so his expected future income falls.
What is the meaning of the word “oligopoly”?
a. few buyers b. many sellers c. few sellers d. one buyer
Behavioral economists have found that:
A. only market prices matter when people make decisions. B. people are always irrational when considering incentives. C. markets are the best way to organize mutually beneficial exchanges. D. design mechanisms must take social factors as well as price into account.
If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:
A. 1. B. 2. C. 4. D. 9.