Which of the following is NOT a reason why a firm may experience economies of scale?
A) productive specialization
B) dimensional factors
C) improved productive equipment
D) increased layers of management
Answer: D
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Fed policy since the early 1990s indicates that it is pursuing a policy of targeting the
A) monetary base. B) money supply. C) federal funds interest rate. D) exchange rate.
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.
Suppose the quantity demanded of ice cream cones increases from 400 to 425 cones a day when the price is reduced from $1.50 to $1.25. In this situation, the elasticity of demand, calculated using the average method, is
A) 3. B) 1. C) 0.33. D) 1.33.
In the market for euros, an increase in U.S. imports from Europe tends to
A. cause no change in equilibrium price. B. increase equilibrium price. C. decrease equilibrium price. D. increase excess supply.