Returns to scale is a concept that operates
A) only in the short run.
B) only in the long run.
C) in both the long run and the short run.
D) in either the long run or the short run, but never both.
B
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If aggregate planned expenditures are less than real GDP, then
A) inventories increase above their planned levels and businesses increase their production. B) unplanned inventory changes equal zero. C) inventories decrease below their planned levels and businesses increase their production. D) inventories increase above their planned levels and businesses decrease their production. E) there is no equilibrium level of real GDP.
The intertemporal tradeoff between present and future consumption is measured by the
A) real interest rate. B) inflation rate. C) nominal interest rate. D) terms of trade. E) rate of economic growth.
Suppose that Chloe opens a dog grooming business in a local shopping center. Which of the following would be an example of a factor of production used by Chloe? (i) her employees' time (ii) brushes, combs, scissors, and clippers (iii) shampoo, water, and flea prevention treatments (iv) Chloe's time spent on bookkeeping and bill paying
a. (i) only b. (i) and (ii) only c. (i), (ii), and (iii) only d. (i), (ii), (iii), and (iv)
Members of Congress promising to support each other's legislation is known as
A) logrolling. B) implicit collusion. C) explicit collusion. D) protectionism.