What economic concept would be most closely associated with a situation where an aluminum plant expands its operations and uses extensive computerization in the production line to reduce per-unit costs of production?
A. Infrastructure
B. Human capital
C. Network effects
D. Economies of scale
D. Economies of scale
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A decrease in the price of peanuts will cause a leftward shift of the supply curve of peanut butter
a. True b. False
The theory of comparative advantage shows that the gains from international trade result from producing: a. at a lower opportunity cost. b. at a lower absolute cost
c. a labor-intensive good. d. a capital-intensive good.
Suppose market demand and supply are given by Qd = 100 - 2P and QS = 5 + 3P. If the government sets a price floor of $30 and agrees to purchase all surplus at $30 per unit, the total cost to the government will be:
A. $1,125. B. $1,650. C. $1,375. D. $900.
The time it takes to recognize a recession and implement a spending stimulus is called a
A. fiscal drag. B. multiplier. C. retroactivity. D. lag.