Why could diseconomies of scale never occur if production relationships were only technical relationships?
A. Because producers would have a greater variety of methods of production to avoid the diseconomies.
B. Because the same technical process could be used over and over again at the same cost.
C. Because having technical relationships would mean that managers would not have to choose among production techniques.
D. Because technical relationships mean that the marginal cost curve would be flat.
Ans: B. Because the same technical process could be used over and over again at the same cost.
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The market demand for MP3 players is p = 50 - 0.5Q, and the marginal cost for Nick to obtain and sell an MP3 player is $12. If he receives 60% of the MP3 sales revenue, then
A) Nick will sell 38 MP3 players. B) Nick will sell 50 MP3 players. C) Nick will receive $270 as profit. D) total profit is $342.
According to the budget philosophy of functional finance, _____
a. the budget should be balanced annually b. surpluses should be run during periods of prosperity and deficits should be run during recessions c. the government budget should be whatever is necessary to have the economy operate at potential GDP d. the budget should never be in balance e. the rate of growth in the national debt should equal the rate of growth in the money supply
A leftward shift of a supply curve is called a(n):
a. decrease in demand. b. increase in supply. c. decrease in supply. d. increase in quantity supplied. e. decrease in quantity supplied.
Which one of the following statements is true?
a. Resources flow from the government to households. b. Resources flow from firms to households. c. Taxes flow from firms to the government. d. Resource payments flow from firms to households e. Imports flow from firms to foreign economies.