If output is increased in the long-run, then in the presence of internal economies of scale the number of firms will ________, and in the presence of constant external returns to scale the number of firms will ________
A) decrease; decrease
B) increase; remain constant
C) remain constant; increase
D) decrease; remain constant
E) increase; decrease
C
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Which of the following is NOT a problem in following an activist policy?
A) ineffectiveness in fiscal policy B) lags in the effects of policies C) multiplier uncertainty D) forecasting errors
You own a tract of trees and are deciding whether to harvest them now or next year. If you harvest them now, you can invest the proceeds and get a return of 5% on your investment. What should you do?
a. Let the trees grow as long as their dollar worth increases by more than 5% b. Let the trees grow c. Cut down the trees, and sell them d. Let the trees grow as long as their dollar worth increases by less than 5%
According to the following graphs, what does the curve in the lower graph show?
The price of Y is $15 per unit.
A. how a consumer's preferences change when income changes B. how a consumer's utility-maximizing choices of X changes when the price of X changes C. how a consumer's utility-maximizing choices of Y changes when the price of Y changes D. how a consumer's utility-maximizing choices of X and Y change when the budget constraint changes E. both c and d
How do you calculate a percentage change in quantity if given an elasticity of demand and a percentage change in price?
What will be an ideal response?