All of these are true, except
a. If production exhibits diseconomies of scope, firm should pair down production line to reduce costs.
b. If production exhibits diseconomies of scope, firm should pair up production line to reduce costs.
c. If production exhibits economies of scope, firm should pair up production line to reduce costs.
d. If production exhibits economies of scope, firm should pair down production line to increase costs.
b
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The number of people looking to buy ceiling fans increases, so there is an increase in the
A) quantity of ceiling fans demanded and a surplus of ceiling fans. B) demand for ceiling fans and a rise in the price of a ceiling fan. C) demand for ceiling fans and a surplus of ceiling fans. D) supply of ceiling fans and no change in the price of a ceiling fan. E) demand for ceiling fans and in the supply of ceiling fans.
Underproduction of good ________ create a deadweight loss and overproduction of a good ________ create a deadweight loss
A) will; will B) will; will not C) will not; will D) will not; will not
More than 80 percent of the home heating oil used in the United States goes to the Northeast. In Vermont, the vast majority of people there use oil to stay warm when it's cold outside
Richard Izor heats his home with oil and inquires, "I'd like to see them come in and put a ceiling on the oil price now before it gets any higher. Why they haven't done this is more than I can understand." Which of the following is NOT likely to occur if such a price ceiling was imposed? A) There would be a surplus of heating oil. B) A heating oil shortage may occur. C) A black market for heating oil may be created. D) There would be an increase in inefficiency in the heating oil market.
Based on what we know about asset price formation, what steps can a government use to restrict the formation of an asset price bubble?
A) Lower interest rates in order to discourage savings and investment B) Loosen lending requirements for banks, which encourages investors to buy bank stock rather than the "bubbling" asset C) Increase the money supply D) Raise interest rates in order to increase the costs of financing asset purchases