What factors explain economies of scale?
Please provide the best answer for the statement.
First, as plant size increases, there can be greater specialization of labor that permits increased productivity and lower average costs. Second, managerial specialization can occur as plant size increases and contributes to increased productivity and lower costs. Third, larger-scale firms are usually able to make use of more efficient (technologically superior) capital equipment that may only be suitable for use if there is a large quantity of production. Fourth, some enterprises require large start-up costs that can be reduced as output increases.
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The value of a country's final goods and services after adjusting for changes due to inflation is called its _____
a. real GDP b. nominal GDP c. disposable income d. net national product e. full employment output
Life insurance companies usually require applicants to have physicals and disclose information on their health. This practice is designed to address
a. a principal-agent problem. b. a moral-hazard problem. c. a problem involving hidden characteristics. d. all of the above are correct.
If the Fed buys more bonds from the public, then the money supply will:
A. Decrease and the aggregate demand curve will shift to the right. B. Increase and the aggregate demand curve will shift to the right. C. Increase and the aggregate demand curve will shift to the left. D. Decrease and the aggregate demand curve will shift to the left.
The question "Should more capital goods be produced instead of consumer goods?" is an example of which fundamental economic question?
A. The What to Produce question. B. The Why to Produce question. C. The How to Produce question. D. The For Whom to Produce question.