If a firm that repairs both motorcycles and cars is able to do so at a lower cost than a firm that does only one or the other, this would be an example of
A) economies of scope.
B) economies of scale.
C) monitoring.
D) increasing transactions costs.
A
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The crowding-out effect describes how a government budget ________ ________ the real interest rate and thereby ________ equilibrium investment
A) surplus; raises; decreases B) surplus; lowers; decreases C) deficit; lowers; decreases D) deficit; lowers; increases E) deficit; raises; decreases
The manager of Slick Lens, a sunglasses manufacturer, notices that the cost to distribute their sunglasses in the spot market has risen. As a result of the change, which of the following is true?
A) The manager has more of an incentive to integrate forward. B) The manager has more of an incentive to integrate backward. C) The manager has less of an incentive to integrate forward. D) The manager has less of an incentive to integrate backward.
Suppose a roll of paper towels costs $6 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $2 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $3 and is $6 to Big Supplies, which of the following is true?
A) It is cheaper for the consumer to buy the paper towels at Big Supplies. B) It is more expensive for the consumer to buy the paper towels at Big Supplies. C) The consumer is indifferent as to where they buy the paper towels. D) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop.
Which of the following are capital goods?
a. land and raw materials b. all manufactured goods c. automobiles and houses d. factories and machinery e. all goods consumed by both firms and households