Describe how an accounting firm could experience economies of scale
Specialization of labor can produce economies of scale. Specialization of labor could occur if the firm hires new workers with different areas of expertise. Suppose that the first person specializes in individual tax returns, the second person specializes in small business tax returns, and the third person specializes in farm tax returns. The three employees together could produce more than triple the number of tax returns that the first person could produce.
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When a firm makes zero economic profit, it means that: a. the firm is covering implicit costs alone
b. the firm is covering the total opportunity costs of its resources. c. the firm is covering explicit costs alone. d. the firm is running at an accounting loss.
In the U.S. a box of tea costs $5 . The same box of tea in Uganda costs 10,000 schillings (the currency of Uganda). If the real exchange rate is 5/4, what is the nominal exchange rate? Show your work
Public investment in crop breeding has tended to emphasize longer term research while investment by the private sector has emphasized:
a. Investment in animal agriculture b. Investment to encourage small scale production c. Investment in cultivar development with short term payoffs d. All of the above
Inflationary pressure is a growing problem for the economy. Therefore, the Federal Reserve decides to pursue a policy to reduce the inflationary pressure. Which policy changes by the Fed would reinforce each other to achieve that objective?
a. Buying government securities and lowering the discount rate b. Selling government securities and lowering the discount rate c. Selling government securities and raising the discount rate d. Buying government securities and lowering the reserve ratio