When ________ scale of production leads to ________ average costs, an industry exhibits increasing returns to scale.

A. decreased; higher
B. decreased; unchanging
C. decreased; lower
D. increased; higher


Answer: A

Economics

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During an economic downturn, increased spending on infrastructure repairs is:

A. more costly because the resources needed to complete those projects aren't available. B. a bad idea because there's no need for better infrastructure during an economic downturn. C. less costly because the resources needed to complete those projects would otherwise sit idle. D. a good idea because it will slow the pace of economic recovery.

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Historically, the excess reserves of banks have been ________ relative to checkable deposits, but during the crisis of 2008 the excess reserves of banks ________. (Fill in the blanks)

a. large; declined sharply b. small; fell sharply c. small; increased sharply d. large; increased sharply

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To determine whether a nation has an "abundance" of a resource, economists look at:

a. the exports of the nation. b. the imports of the nation. the total quantity of that resource compared with c. the total quantity of the other resource. d. a nation's share of the resource compared with its share of world GDP

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With regard to GDP, residential property taxes are an example of ____ taxes.

A. variable B. sales C. fixed D. disposable

Economics