One In the News article titled "Funeral Giant Moves In on Small Rivals" reports that profit for a Houston-based funeral giant is 31 cents on every dollar versus a profit of 12 cents for the funeral industry in general. Such profits are most likely the result of
A. A downward shift in the production function.
B. Economies of scale.
C. Higher minimum average costs.
D. Constant returns to scale.
Answer: B
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Refer to Figure 2-16. In the circular flow diagram, who are economic agents A and who are economic agents B?
A) A= firms; B = product markets B) A = firms; B = households C) A = households; B = firms D) A = households; B = factor markets
The best guess has turnover unemployment about ________ as mismatch unemployment
A) three times as large B) twice as large C) the same size D) two-thirds as large E) half as large
The key difference between "quantitative easing" and "credit easing" is that ________
A) the goal of the former is to raise expected inflation B) the latter refers to a substantial change in the composition of the central bank's balance sheet C) the latter refers to a substantial expansion of the central bank's balance sheet D) the former is endorsed by Federal Reserve Chairman Ben Bernanke, while the latter was devised by Japan's Prime Minister Shinzo Abe E) none of the above
A utilitarian government will pursue policies that redistribute income from the rich to the poor. One problem with these policies is that
a. everyone has less incentive to work hard. b. the rich will work harder while the poor will not. c. the poor will work harder while the rich will not. d. everyone in the middle class ends up worse off.