Economies of scope is the term used to describe an industry that is composed of firms having substantial economies of scale
a. True
b. False
B
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Open market operations refer to the purchase or sale of ________ by the Federal Reserve in order to influence the money supply
A) U.S. government bonds B) corporate bonds and stocks C) foreign currency D) commodities
One reason that an efficiency wage leads to greater worker productivity is that:
A. earning more than the market wage gives workers an incentive to stay with the firm. B. it deters workers from trying to start a union. C. due to competition for their jobs, which are now desired, firms to pay less overall for a worker in the long run. D. it is set right at market equilibrium which creates an efficient labor market.
Which of the following is true? a. The tax multiplier is smaller than the government spending multiplier
b. The government cannot stimulate consumer spending through tax cuts. c. The government spending multiplier is smaller than the tax multiplier. d. The government can stimulate consumer spending through decreases in transfer payments.
The independence of the Fed
A. allows it to run a monetary policy different from that which elected officials might demand. B. means that the Fed frequently pursues policies quite different from what the President asks for. C. is widely agreed to be best for the nation's welfare. D. is not real, since Congress must approve its policy.