Which of the following is most likely to help promote the efficient use of resources and rapid economic growth?
a. high tariffs and imposition of other trade restrictions
b. high marginal tax rates
c. an open and competitive capital market
d. high rates of inflation
C
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Which of the following statements is true?
A) If marginal costs are constant, then it is optimal to advertise until the last dollar spent on advertising generates one additional dollar of sales. B) If the demand curve shifts leftward as the advertising expenditure increases, then the advertising elasticity of demand is positive. C) If the advertising elasticity of demand declines and consumer demand becomes more price elastic, then the optimal advertising-to-sales ratio declines. D) If the advertising elasticity of demand is positive, then the demand curve must be upward sloping.
At the end of the 18th century, approximately _______ percent of the American people earned a major portion of their income by farming
a. 25 b. 50 c. 70 d. 90
If international trade is restricted by the government of a country:
a. the domestic consumers are benefited. b. the domestic producers are adversely affected. c. the domestic consumers pay higher prices for imported goods. d. the resources are equally distributed among domestic and foreign producers. e. the resources are allocated to their highest paid uses.
Suppose there is a technology to produce Grendels such that there are diseconomies of scale after the first unit is produced. There are both fixed (a physical plant called a lair) and variable (food that grows in lairs) costs of production. Which statement is true? a. No Grendels will be produced. b. Producing multiple units increases the average fixed cost. c. There will be no more than one
firm in this industry. d. It is cheaper to make five Grendels by buying five lairs and producing one Grendel in each lair than it is to produce five Grendels in one lair. e. This is an impossible situation.