Economies of scale may be a barrier to entry in a situation in which
A. only small-scale production can meet the constantly changing market demand.
B. only small-scale production can lower the per-unit cost of production.
C. only large-scale production can lower the per-unit cost of production.
D. large-scale production is inefficient.
Answer: C
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If expectations about future income change, there is
A) a decrease saving if people expect income to decrease in the future. B) a decrease in saving if people expect income to increase in the future. C) an increase in saving if people expect income to increase in the future. D) no change in saving until income actually changes. E) a change in the quantity of loanable funds supplied and a movement along the supply of loanable funds curve.
In organizational design issues, decision rights pertain to
a. the legal workplace related rights of employees b. the regulations governing how a potential customer chooses which product to purchase c. the set of decisions that go with a particular position within the firm d. who gets to decide from which place co-workers will order lunch
Ross earns $60 each day. He spends this entire money either on movies or on games. The price of a movie ticket is $15, and the price of a game is $30 . Which of the following consumption bundles can Ross afford, given his income?
a. 5 movies and 2 games b. 2 movies and 1 game c. 3 movies and 1 games d. 0 movies and 3 games
Which of the following is a major pitfall to avoid when purchasing a home?
A) making a large down payment B) use of a fixed rate mortgage to cover 80 percent of the purchase price C) making a small down payment, for example 5 percent or less D) economical purchase of a home that has gone through the foreclosure process