When Fatz confectionery can lower the cost of manufacturing and packaging a pound of candy by doubling the quantity manufactured and packaged each day, it will achieve
A) economies of scope.
B) economies of scale.
C) economies of team production.
D) all of the above
B
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A problem with currency boards is that the central bank loses:
A. influence over interest rates. B. a flexible exchange rate is always preferred to a pegged exchange rate. C. control over the government budget. D. the ability to supervise banks.
If the price level does not fall or only falls very slowly, then the result will be a prolonged period of
A. inflation whenever supply increases. B. production below potential GDP. C. production above potential GDP. D. rapid price increases when demand changes.
Players in all of the following games have no dominant strategy except in
A) a prisoner's dilemma game. B) a pure coordination game. C) an assurance game. D) a battle of the sexes game.
The more education that workers have, the ________ is their human capital and the ________ is their productivity
A) larger; higher B) larger; smaller C) smaller; higher D) smaller; smaller