Economies of scale do not exist in the presence of indivisible setup costs.
Answer the following statement true (T) or false (F)
False
Sizable indivisible setup costs entail economies of scale because higher production levels are necessary for production to be economically efficient.
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If the number of employed workers in a country is 6 million, and the size of the labor force in the economy is 8 million, the unemployment rate in the country is:
A) 25 percent. B) 24 percent. C) 8 percent. D) 30 percent.
If a society moves from a period of time with significant unemployment to a time with full employment, its production possibilities frontier will
A) shift rightward. B) not shift because the society moves from a point inside the frontier to a point on the frontier. C) shift leftward. D) not shift because the society moves from one point on the frontier to a point inside the frontier. E) not shift because the society moves from one point on the frontier to a point outside the frontier.
The Taylor rule helps explain the relationship between the Fed's ________ and ________
A) federal funds target; the monetary growth rule B) federal funds target; economic conditions C) money supply target; the federal funds target D) money supply target; economic conditions
Which of the following is the best definition of openness?
a. The average of imports expressed as a share of GDP. b. The average of goods traded in markets expressed as a share of GDP. c. The average of imports and exports expressed as a share of GDP. d. The average trade balance expressed as a share of GDP. e. The average of exports expressed as a share of GDP.