Suppose a firm uses only capital and labor to produce output. When the firm doubles the amount of both inputs, output increases by less than double. This firm exhibits:
A. increasing returns to scale.
B. decreasing returns to scale.
C. constant returns to scale.
D. diminishing marginal returns.
B. decreasing returns to scale.
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Open market operations refer to the purchase or sale of ________ to control the money supply.
A) corporate bonds and stocks by the Federal Reserve B) U.S. Treasury securities by the Federal Reserve C) corporate bonds and stocks by the U.S. Treasury D) U.S. Treasury securities by the U.S. Treasury
In the United States, the wealthiest 10 percent of households own about ________ of total wealth
A) 40 percent B) 66 percent C) 90 percent D) 55 percent
Usury laws interfere with the automatic workings of the market mechanism.
Answer the following statement true (T) or false (F)
Refer to Figure 14.2. A movement from point d to point c could be caused by an:
A. increase in government spending. B. increase in the price of oil. C. increase in taxes. D. increase in short-run aggregate supply.