If an industry exhibits economies of scale, one larger firm may be able to produce goods at a lower long-run average cost than two smaller firms
a. True
b. False
Indicate whether the statement is true or false
True
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When governments specify the maximum amount of a good that may be imported in a given period of time, they are establishing a
A) tariff. B) quota. C) dynamic tariff. D) tax. E) dumping limit.
In 1990-1991, the government budget deficit ________ mainly due to the ________
A) rose, recession's effect on tax collection B) rose, expenditures of the Persian Gulf War C) fell, recession's effect on government expenditures D) fell, economic stimulus provided by the Persian Gulf War
Price reductions will usually result whenever the quantity supplied exceeds the quantity demanded at the current price
a. True b. False Indicate whether the statement is true or false
What is the fundamental principle that economists use when evaluating the costs and benefits of production?
A) cost of goods principle B) production principle C) marginal principle D) supply and demand principle