If a firm has increasing returns to scale at all levels of output, the
a. slope of its long-run total cost curve is always negative.
b. slopes of its short-run average cost curves are always negative.
c. slope of its long-run average cost curve is always negative.
d. slope of its production function is always negative.
c
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The East Asian model's approach to foreign trade has been
a. to give major incentives to exports b. to allow the market to determine whether firms export or import c. to follow import substitution policies d. to maintain state control over foreign trade operations e. none of the above
If the government enacts contractionary fiscal policy, it could:
A. reduce its spending. B. decrease personal income taxes. C. decrease corporate income taxes. D. All of these are contractionary.
Which of the following weakened the demand stimulus effects of the fed's low interest rate policy during the years following the 2008-2009 recession?
a. Rising stock prices in response to the low-interest rate policy. b. The lower cost of borrowing to undertake business investment. c. An increase in the velocity of money. d. A reduction in earnings of senior citizens and others from money market accounts, saving deposits, and similar forms of savings.
The tragedy of the commons refers to:
a. the plight of the common people, who are doomed to low paying jobs and discrimination. b. the fact that public resources are becoming scarce. c. the idea that what we have in common is often not why we trade. d. the idea that when everyone has free access to a resource, it will be overused and depleted.