When long-run average costs decline as output increases, the firm is experiencing
A. negative returns to scale.
B. constant returns to scale.
C. diseconomies of scale.
D. economies of scale.
Answer: D
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Refer the above figure. Suppose the union sets the wage rate that will maximize the total income for the members who work. The total wages will be
A) W1iL4O. B) W2aL3O. C) W3bL2O. D) W3bhW1.
C. stayed relatively low, due to the lack of lending by banks, reducing the effectiveness of the money multiplier.
A. import, because they are assembled in China. B. import, because they are assembled in Mexico. C. export, because they are assembled in China. D. export, because they are produced in the U.S.
Given free mobility of people, wage differentials will contribute to long-term wage disparities among regions
Indicate whether the statement is true or false
Time inconsistency will cause the
a. short-run Phillips curve to be higher than otherwise. b. short-run Phillips curve to be lower the otherwise. c. long-run Phillips curve to be farther to the right than otherwise. d. long-run Phillips curve to be farther left than otherwise.