Which of the following is NOT a reason a firm might experience economies of scale?
A. dimensional factors
B. more productive equipment
C. increasing long-run average costs
D. specialization
Answer: C
You might also like to view...
If you transfer all of your currency to your checking account, then initially, M1 will ________ and M2 will ________
A) not change; not change B) decrease; increase C) increase; not change D) not change; increase
The government regulates the banking industry by
a. conducting frequent audits and examinations. b. limiting the kinds of assets that a bank may own. c. limiting the quantity of some kinds of assets that a bank may own. d. All of the above are correct.
Suppose the government increases the corporate income tax rate. This is
A) an expansionary fiscal policy that will shift the aggregate demand curve to the right by an amount equal to the initial change in corporate income tax revenue times the spending multiplier. B) a contractionary fiscal policy that will shift the aggregate demand curve to the left by an amount equal to the initial change in investment times the spending multiplier. C) a contractionary fiscal policy that will shift the aggregate demand curve to the left by an amount equal to the initial change in the corporate income tax rate times the spending multiplier. D) an automatic fiscal policy that will shift the aggregate demand curve to the left by an amount equal to the initial change in investment times the spending multiplier.
The natural rate hypothesis argues that the economy will:
A. self-correct to the natural rate of inflation. B. require expansionary fiscal policy to reach the natural rate of unemployment. C. self-correct to the natural rate of unemployment. D. require expansionary monetary policy to reach the natural rate of unemployment.