The above figure shows the isoquants for producing steel. When producing less than 10,000 tons there are
A) increasing returns to scale.
B) decreasing returns to scale.
C) constant returns to scale.
D) diseconomies of scale.
A
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In late 2007, the Fed began a series of cuts in the federal funds rate. Because the core inflation rate was about two percent, the most likely reason for these interest rate cuts was
A) to increase the real interest rate. B) to avoid a recession. C) to encourage households to save more money. D) to reduce the natural unemployment rate. E) to raise the price of the dollar in the foreign exchange market.
Why are most contracts incomplete?
The government's spending on agriculture is essentially a transfer payments program that takes money from the general population in the form of taxes and gives it to the farm population in the form of subsidies
Indicate whether the statement is true or false
Which of the following best explains why both nations with high living standards and nations with low living standards face the problem of scarcity?
a. All nations face the same microeconomic issues. b. All nations face the same macroeconomic issues. c. All individuals, whether rich or poor, are dissatisfied with their material well-being and would like more. d. all of the above options are correct.