Assume a subsidy to buyers has been enacted in the market in the graph shown. With the subsidy, the producers sell _____ units and receive _____ for each of them.
A. 100; $46
B. 100; $30
C. 150; $40
D. 150; $24
C. 150; $40
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Transactions costs are defined to be the:
A. costs a buyer or seller incurs to make a transaction take place. B. taxes they pay when purchasing a good or service. C. fees they are charged if they purchase a good or service on credit. D. costs a buyer faces if they re-sell a good or service.
Suppose the reserve requirement is 20 percent and banks hold no excess reserves. A $1 billion sale of government securities by the Fed will:
A. reduce checkable deposits in the banking system by $1 billion. B. increase checkable deposits in the banking system by $5 billion. C. reduce checkable deposits in the banking system by $5 billion. D. increase checkable deposits in the banking system by $1 billion.
Improvements in human capital and education played a major role in the productivity improvements of the U.S. economy from 1995 to 2009.
Answer the following statement true (T) or false (F)
If an industry's long-run average total cost curve has an extended range of constant returns to scale, this implies that:
A. technology precludes both economies and diseconomies of scale. B. the industry will be a natural monopoly. C. both relatively small and relatively large firms can be viable in the industry. D. the industry will be comprised of a very large number of small firms.