Economies of scale suggests that as the level of production:
a. decreases, the average cost of producing each individual unit increases.
b. increases, the average cost of producing each individual unit increases.
c. decreases, the average cost of producing each individual unit declines.
d. increases, the average cost of producing each individual unit declines.
d. increases, the average cost of producing each individual unit declines.
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In economics, ________ are limited but ________ are unlimited
A) wants; resources B) resources; wants C) money; ideas D) ideas; money
If $30 billion in new investment was added to the economy and MPC was 0.90, real GDP would increase by:
a. $30 billion. b. $90 billion. c. $100 billion. d. $210 billion. e. $300 billion.
If there is a shortage of loanable funds, then
a. the demand for loanable funds will shift right so the real interest rate rises. b. the supply of loanable funds will shift left so the real interest rate falls. c. there will be no shifts of the curves, but the real interest rate rises. d. there will be no shifts of the curves, but the real interest rate falls.
The American Bar Association administers the bar examinations that prospective lawyers must pass before being allowed to practice law. The legal requirement to pass this test before practicing law allows the Bar Association to act as a
A. monopsony. B. union that can restrict the supply of lawyers. C. union that can increase the number of lawyers. D. bilateral monopoly.