Economies of scale:
a. are the result of a diminishing marginal product
b. pertain to the long run only.
c. refer to the increase in output that results from the increased utilization of a single input.
d. imply that the average total cost curve will fall continuously as output increases in the short run.
b
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The rising phase of a business cycle measured by an increase in real GDP is called:
A) trough. B) expansion. C) recession. D) contraction.
Which of the following are NOT traded in a capital market?
A) U.S. government agency securities B) state and local government bonds C) repurchase agreements D) corporate bonds
If Pat can produce a good or service at a lower opportunity cost than Chris can, then
a. Pat has a comparative advantage in producing the good or service b. no gains are possible through specialization c. Pat must have an absolute advantage in producing the good or service d. Pat must be more talented than Chris e. society is at a point along its production possibilities frontier
Construction work is much riskier than working as a server at a restaurant. As a result, we'd expect a difference in wages between the two jobs. The difference is known as
a. an efficiency wage. b. a compensating differential. c. a wage adjustment. d. a minimum wage.