Suppose that in 2012 MBI Corp. produced 100 million units of a good at an average cost of $6, and in 2013 MBI Corp. expanded its plant capacity and produced 200 million units at an average cost of $6.20. In this range, one can conclude that MBI Corp. is experiencing:
A. economies of scale.
B. diseconomies of scale.
C. neither economies of scale nor diseconomies of scale.
D. increasing marginal product.
Answer: B
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A central bank accepts deposits from
A) the federal government and commercial banks. B) commercial banks and private businesses. C) private businesses and individuals. D) individuals, private businesses, commercial banks, and the federal government.
According to economic theory, state governments
A) will be biased toward chronic budget deficits. B) will act in the public interest. C) will act in the national interest. D) will do all of the above. E) will do none of the above.
The idea that expansionary fiscal policy has a positive affect on investment is known as
a. monetary policy. b. crowding out. c. the investment accelerator. d. the multiplier.
Under which of the following circumstances would an auditor be most likely to intensify an examination of a $500 imprest petty cash fund?
A) Reimbursement occurs twice each week. B) Reimbursement vouchers are not prenumbered. C) The custodian occasionally uses the cash fund to cash employee checks. D) The custodian endorses reimbursement checks.