Related to the Economics in Practice on page 196. The search engine business is subject to ________, which means that as the use of the search engine increases, the long-run cost to provide additional searches on that search engine will likely fall.
A. significant government regulation
B. diminishing returns
C. economies of scale
D. diseconomies of scale
Answer: C
You might also like to view...
Which is NOT an example of moral hazard
a. people eat more at all-you-can-eat buffets b. loggers clear-cut a tract of land when paying a fixed fee rather than when paying per tree felled c. Drivers of heavier, safer cares are more likely to run stop signs d. workers paid an hourly wage work harder than those on commission
What is the largest reason for people being unemployed?
a. New entrants b. Re-entrants c. Job losers d. Job leavers
When looking at a graph of nominal and real interest rates you notice the graph for nominal rates and the graph for real rates cross each other many times. From this you conclude
a. consumer prices sometimes rose and sometimes fell in the time frame represented on the graph. b. consumer prices were always rising in the time frame represented on the graph. c. the economy never experienced a recession in the time frame represented on the graph. d. GDP was always increasing for the time frame represented on the graph.
According to the "wealth effect," when the ________ falls, the ________ rises
A) inflation rate; nominal value of household assets B) unemployment rate; average level of household income C) price level; the nominal value of household wealth D) price level; the real value of household wealth