Adam Smith used a famous example of what type of firm to illustrate economies of scale?
a. Apple
b. a pin factory
c. a lumber mill
d. a British university
b
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Taxing the market for alcohol at the same rate as the market for juice will likely:
A. raise more revenue. B. cause more inefficiency. C. cause a very big reaction in terms of decreased quantity demanded. D. produce very similar results in terms of revenue and inefficiency because the rate is the same.
The banking system is able to make new loans equal to
A) total legal reserves of the system. B) total excess reserves of the system. C) total required reserves of the system. D) a multiple of total excess reserves of the system.
The following table lists the utility that Sarah receives from consuming bananas at $0.25 a banana. What is the marginal utility of consuming the fourth banana?Number of bananasTotal utility00110222332440546
A. 40 B. 8 C. 32 D. 2
The classical economists believed that if saving exceeded investment, the _____________.
Fill in the blank(s) with the appropriate word(s).