Economies of scale can occur as a result of which of the following?
A) increasing marginal returns as the firm increases its size
B) lower fixed cost as the firm increases its size
C) management difficulties as the firm increases its size
D) greater specialization of labor and capital as the firm increases its size
E) increased total cost when the firm increases its size
D
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An inverted yield curve is a valuable forecasting tool because:
A. investors are expecting higher short-term rates in the future, and this usually signals an economic slowdown. B. inverted yield curves signal better economic times are expected. C. the yield curve usually is inverted so it reflects a growing economy. D. the yield curve seldom is inverted and can signal an economic slowdown.
Specialization in production is economically beneficial primarily because it:
A. allows everyone to have a job that he or she likes. B. permits the production of a larger output with fixed amounts of resources. C. facilitates trade by bartering. D. guarantees full employment.
Suppose that an early frost damages the Florida orange crop. As a result, the price of California oranges increases. Ceteris paribus, which one of the following statements best explains this situation?
A) The supply of Florida oranges decreased, causing the supply of California oranges to increase, which resulted in a higher price. B) The supply of Florida oranges decreased, causing the supply of California oranges to decrease, which resulted in a higher price. C) The supply of Florida oranges decreased, causing their price to increase, and thus causing the demand for California oranges to increase. D) The demand for Florida oranges fell because of the freeze, and this led to a higher demand for California oranges.
For economic growth to take? place, a country must save.? But, for saving to actually generate economic? growth,
What will be an ideal response?