When long-run average costs decrease as output increases, there are
A) economies of scale.
B) diseconomies of scale.
C) constant returns to scale.
D) constant marginal costs.
A
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Refer to Figure 7.1. Start from initial equilibrium. If firms increase their capital stock, the new real wage could be ________ and the new amount of labor employed could be ________
A) X; A B) Z; A C) X; C D) Z; C
Which of the following would be considered special interest group?
a. National Rifle Association b. Greenpeace c. the U.S. sugar industry d. all of the above
Refer to the above figure. Which of the following statements is TRUE?
A. Panel A represents an economy that has a lower level of technology than Panel B. B. In Panel A, equal amounts of Y must be given up to obtain equal increments of X while in Panel B increasingly greater amounts of Y must be given up to obtain equal increments of X. C. Opportunity costs do not apply to Panel A but apply to Panel B. D. Panel A does not represent an economy that is producing efficiently while Panel B does.
Which of the following tools of monetary policy is flexible and able to affect bank reserves quickly and by relatively specific amounts?
A. The discount rate. B. The reserve ratio. C. Open-market operations. D. The federal funds rate.