If a firm increases its output and its average cost decreases, the firm is experiencing which of the following?
A) increasing marginal returns
B) diseconomies of scale
C) economies of scale
D) random luck
E) decreasing cost of marginal returns
C
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Refer to Figure 2-12. Which country has a comparative advantage in the production of honey?
A) They have equal productive abilities. B) Tahiti C) Bora Bora D) neither country
If you look at the financial page listings for futures contracts and find that futures prices on Treasury bonds are falling over a particular time period, futures market investors must expect that
A) Treasury bond prices will be higher in the future. B) Treasury bond yields will be higher in the future. C) Treasury bond yields will be lower in the future. D) futures prices will rise again at the end of the period.
In the linear probability model, the interpretation of the slope coefficient is
A) the change in odds associated with a unit change in X, holding other regressors constant. B) not all that meaningful since the dependent variable is either 0 or 1. C) the change in probability that Y=1 associated with a unit change in X, holding others regressors constant. D) the response in the dependent variable to a percentage change in the regressor.
If the MPC is 0.6, and the government increases its spending by $300b, the overall effect on GDP will be:
A. a decrease of $750b. B. a decrease of $550b. C. an increase of $750b. D. an increase of $250b.