The production of cigarettes is highly automated; however, a worker is required to monitor each machine. Machines and workers do not interact with one another. Given this information, there are most likely
A) economies of scale.
B) economies of scope.
C) constant returns to scale.
D) increasing returns to scale.
C
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Moving on a bowed out PPF, what happens to the opportunity cost of its production as a nation specializes more in one product?
What will be an ideal response?
By common definition, a recession occurs when
A) the international deficit worsens for at least two successive quarters. B) the government budget deficit exceeds the national debt. C) the inflation rate exceeds 3.5 percent. D) real GDP decreases for at least two successive quarters.
The short-run Phillips curve is downward sloping but the long-run is a vertical line
a. True b. False Indicate whether the statement is true or false
A macroeconomist would be interested in the
a. general rise of prices b. decline of cheese prices c. fluctuation of oil prices d. sharp rise of coffee prices