Which of the following is not cited as one of the factors that accounts for the large-scale production that exists in many sectors of the economy?
A) Economies of scale.
B) Advertising and image differentiation.
C) The minimum efficient scale of operation in many industries is quite high relative to market demand.
D) Risk spreading.
C
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Public parks and libraries are examples of
a. economic goods. b. free goods. c. intangible goods. d. public goods.
How does a decrease in government spending affect the aggregate expenditure line?
A) It increases the slope of the aggregate expenditure line. B) It shifts the aggregate expenditure line downward. C) It decreases the slope of the aggregate expenditure line. D) It shifts the aggregate expenditure line upward.
Briefly explain why changes in government spending or taxes do not have independent effects on aggregate demand. What does shift the aggregate demand curve in the classical model?
What will be an ideal response?
Sir Isaac Newton's development of the theory of gravity after observing an apple fall from a tree is an example of
a. a controlled experiment that lead to the formulation of a scientific theory. b. being in the right place at the right time. c. an idea whose time had come. d. the interplay between observation and theory in science.