If unit costs increase as the quantity of production increases and all inputs are variable, then a firm is experiencing
A) constant returns to scale.
B) economies of scale.
C) diseconomies of scale.
D) falling economies of scope.
C
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When banks offer borrowers smaller loans than they have requested, banks are said to
A) shave credit. B) rediscount the loan. C) raze credit. D) ration credit.
Which of the following terms describes the process wherein many of the different stages of producing a good happen in different geographic locations?
a. supply chain management b. splitting up the supply chain c. splitting up the value chain d. value Chain management
The Phillips curve describes the relationship between real GDP and inflation.
Indicate whether the statement is true or false.
Using the above figure, which of the following is CORRECT?
A) 1 guilder will sell for $2. B) 1 dollar will sell for 1/2 guilder. C) A shortage of guilders exists at an exchange rate above $0.60. D) A surplus of guilders exists at an exchange rate above $0.60.