“Economies of scope” occur when
A. fixed costs are high and marginal costs are low.
B. a monopoly can produce for the entire market.
C. similar production techniques can be applied to several products.
D. costs are fully distributed.
Answer: C
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An increase in the capital stock would be expected to
a. decrease the labor force. b. increase the level of output. c. decrease real GDP per capita. d. increase real GDP per capita.
A tax rebate
A. Increases the incentive to work and invest. B. Has the same impact as a decrease in marginal tax rates. C. Does not affect aggregate demand. D. Does not affect aggregate supply.
Refer to the information provided in Figure 3.19 below to answer the question(s) that follow.
Figure 3.19Refer to Figure 3.19. The market is initially in equilibrium at Point A. If supply shifts from S1 to S2 and the price of cheeseburgers remains constant at $5.00, there will be
A. an excess demand of 4 cheeseburgers. B. an excess supply of 3 cheeseburgers. C. an excess demand of 6 cheeseburgers. D. an excess supply of 6 cheeseburgers.
Consider the demand curves for soft drinks shown in the figure above. A movement from point a to point b represents
A) a decrease in quantity demanded. B) an increase in demand. C) an increase in quantity demanded. D) a decrease in demand.