Refer to the above information. If Normal University undertakes program Level Three:
a. Total benefits will be less than total costs
b. Marginal costs will exceed marginal benefits
c. There would be an underallocation of resources to crime control
d. There would be an overallocation of resources to crime control
Ans: c. There would be an underallocation of resources to crime control
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Diseconomies of scale is a result of
A) mismanagement. B) difficulties of coordinating and controlling a large enterprise. C) specialization of labor, capital, and management. D) technological progress. E) larger fixed costs as the firm's production increases.
A higher inflation rate changes the user cost of capital, which ________ the profit-maximizing level of MPK for firms, leading firms to a ________ capital-output ratio, thus ________ net investment
A) raises, higher, raising B) raises, lower, lowering C) lowers, higher, raising D) lowers, higher, lowering E) lowers, lower, raising
Which of the following describes a situation in which demand must be elastic?
a. Total revenue increases by 15 percent when the price of corndogs rises by 15 percent. b. Total revenue increases by less than 15 percent when the price of corndogs rises by 15 percent. c. Total revenue decreases by more than 15 percent when the price of corndogs rises by 15 percent. d. Total revenue increases by $15 when the price of corndogs rises by $15. e. Total revenue increases by more than $15 when the price of corndogs rises by $15.
The economic boom between 2002 and 2006 was primarily a result of
a. a reduction in stock prices along with rising oil prices. b. a sharp reduction in the real price of resources and wages. c. an increase in both housing and stock prices. d. an increase in both resource prices and interest rates.