A constant-cost industry is one
a. that faces constant average costs in the short run
b. that experiences economies of scale
c. that experiences stable demand
d. whose cost curves do not change as new firms enter
e. that faces increasing resource prices as new firms enter
D
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New Keynesian macroeconomic theory emphasizes the role of "sticky" prices in the economy
Indicate whether the statement is true or false
Productivity growth in the service sector
a. is notoriously difficult to measure. b. is comparable to productivity growth in agriculture. c. has been slow compared with productivity growth in manufacturing. d. Both a and b are correct. e. Both a and c are correct.
Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. Adding a third worker increases production:
A. by 60 hats.
B. by more than the second worker.
C. to 110 hats.
D. All of these are true.
In order to control costs, Medicare has begun to
A. only care for those who cannot afford care themselves. B. use prospective payments based on Diagnosis Related Groups. C. let people choose HMOs and use prospective payments based on Diagnosis Related Groups. D. let people choose HMOs.