If your long-run costs exhibit increasing returns to scale, securing big orders leads you to
a. Increase average costs
b. Reduce average costs
c. Keep the average costs constant
d. None of the above
b
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An exhaustible resource with a very large known reserve will most likely exhibit
A) a highly variable price in the near future. B) a decreasing price in the near future. C) an increasing price in the near future. D) a constant price in the near future.
When a good is not excludable but is rival in consumption the:
A. free rider problem may arise. B. tragedy of the commons may arise. C. good is likely a private good. D. good is likely a common resource.
What is investment in human capital?
In its day-to-day operations, the Fed focuses on
a. an unemployment rate target b. an inflation rate target c. an interest rate target d. a money demand curve target e. several economic targets together